Iron ore prices fluctuate at high level amid completion of purchases ahead of long holiday

Import iron ore prices in China have moved up today, Thursday, January 19, while they have posted small changes compared to last week. Some traders have been finishing purchases this week ahead of the holiday, while most mills have already left the market.

Iron ore fines with 62 percent Fe content have edged up by $2.3/mt today to $124.6/mt CFR. This level is $0.9/mt above that seen a week ago. Brazilian iron ore with 65 percent Fe has indicated a rise of $1.8/mt on January 19 to $137.75/mt CFR, down $1.25/mt week on week, SteelOrbis has learned. 

On January 19, a deal for 170,000 mt of Pilbara fines has been traded at the March index +$1.2, while another deal for the same volume and grade ore has been done at the March index +$1.3/mt. 

During the given week, import iron ore prices have continued to edge up amid the gradual completion of stock replenishments ahead of the Chinese New Year holiday (January 21-27) and the prevailing bullish sentiments among market players. There have been bigger rises for iron ore prices than for other ferrous metal prices, which may exert a negative impact on steelmakers’ willingness to conclude purchases for iron ore after the long holiday. It is expected that import iron ore prices may fluctuate within a limited range in the coming week.  

Iron ore futures prices at Dalian Commodity Exchange have edged up by 1.55 percent to RMB 852.5/mt ($126.0/mt) compared to January 18, while increasing by 0.35 percent compared to January 12.  

As of Thursday, January 19, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,196/mt ($620/mt), increasing by RMB 60/mt ($8.9/mt) or up 1.45 percent since January 12, while increasing by 0.99 percent compared to the previous trading day (January 18). 

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 6.7674