Iron ore prices exceed $120/mt CFR this week amid restocking mood

Import iron ore prices in China have been corrected down slightly today, Thursday, January 12, but they have seen steady increases compared to last week, exceeding $120/mt CFR. Restocking moods have supported prices, but next week is expected to be slow with many buyers leaving the market ahead of the Chinese New Year holiday.

Iron ore fines with 62 percent Fe content have edged down slightly by $0.3/mt today to $123.7/mt CFR. But this level is $6.65/mt above that seen a week ago. Brazilian iron ore with 65 percent Fe has indicated a decline of $0.35/mt on January 12 to $139/mt CFR, up $7.45/mt week on week, SteelOrbis has learned.

On January 12, 80,000 mt of Mac fines have been traded at $120.7/mt CFR. In addition, 50,000 mt of PB fines were sold at RMB 829/mt ($122.5/mt), for delivery at Huanghua port.

During the given week, import iron ore prices have edged up amid active sentiments among market players. However, most steelmakers have completed their purchases of iron ore ahead of the Chinese New Year holiday (January 21-27), while only a few of them will build up stocks further. The demand for iron ore from downstream users will slacken amid decreasing construction activities. It is expected that iron ore prices in the Chinese market will likely fluctuate within a limited range in the coming week.

Iron ore futures prices at Dalian Commodity Exchange have edged up by 1.85 percent to RMB 855.5/mt ($126.4/mt) compared to January 5, while increasing by 1.36 percent compared to January 11.

As of Thursday, January 12, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,136/mt ($583/mt), increasing by RMB 119/mt ($17.6/mt) or up 3.0 percent since January 5, while remaining stable compared to the previous trading day (January 11).

Imported iron ore prices in China (week-on-week basis)

Price includes VAT.

Nationwide iron ore concentrate prices (66 percent Fe)

Price includes VAT.

$1 = RMB 6.768