Iron ore prices have seen sharp rises this week, exceeding the $120/mt CFR mark today, Thursday, August 6, amid healthy demand for the raw material on back of higher construction activities in China, while futures prices have continued to go up sharply.
Iron ore fines with 62 percent Fe content have edged up by $2.6/mt on August 6 to $120.8/mt CFR, while week on week prices have gained $10.4/mt, marking the strongest increase in a week this year. Brazilian iron ore with 65 percent Fe has also moved up today to $128/mt CFR, increasing by $0.7/mt, SteelOrbis has learned.
A deal for 170,000 mt of low alumina 62 percent Fe Brazilian blended fines was concluded at the September index plus $4.15/mt. Also, a cargo of 170,000 mt of Pilbara fines with 62 percent Fe content was sold at $120.2/mt CFR for September shipment. Brazilian 65 percent Fe fines were changed hands at the September index plus $2.7/mt. Australian Yandi fines (110,000 mt) with 58 percent Fe were traded at September index minus $2.7/mt. Demand has increased compared to Wednesday and has reflected overall healthy conditions in the market this week.
Approaching the traditional peak season for steel consumption in China, market players expect to see good demand for iron ore. It is thought that iron ore prices will remain at high levels in the coming period due to relatively low iron ore inventories at steelmakers and at ports.
Iron ore futures prices at Dalian Commodity Exchange have edged up by 2.88 percent today compared to yesterday, coming to RMB 910/mt ($131.1/mt), while increasing by 8.3 percent compared to July 30.
On Thursday, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,858/mt ($555.9/mt), increasing by RMB 91/mt ($13.1/mt) or 2.4 percent since July 30, while increasing by 0.78 percent compared to the previous trading day.
Imported iron ore prices in China (week-on-week basis)
|
Product name |
Iron |
Truck loaded price |
Change |
Price |
Change |
|
Newman iron ore lump |
63/63.5 |
898 |
27 |
129.3 |
4.7 |
|
Yandi fines |
58 / 59 |
777 |
42 |
111.9 |
6.7 |
|
PB Fines |
62 |
903 |
55 |
130.0 |
8.7 |
|
PB iron ore lump |
62/63 |
904 |
31 |
130.2 |
5.3 |
|
Brazil fines |
63 |
916 |
39 |
131.9 |
6.4 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
|
Place of origin |
Market price （RMB/mt, Incl. VAT) |
Change |
Price（$/mt) |
Change |
|
Tangshan |
869 |
9 |
125 |
2 |
|
Beipiao |
791 |
0 |
114 |
1 |
Price includes VAT.
$1 = RMB 6.9438