Iron ore prices fluctuate at low level despite recent rebound

Iron ore prices have edged down slightly compared to that recorded on October 28, and have been at a visibly lower level compared to that recorded on October 22. Though there was a rebound seen over the past two working days amid some slowdown in previously growing supplies, sentiment has not turned positive so far.  

Iron ore fines with 62 percent Fe content have edged down by $0.2/mt today, October 29, to $115.8/mt CFR, which is $3.9/mt lower week on week. Brazilian iron ore with 65 percent Fe has edged down by $0.2/mt on the same day to $130/mt CFR, down by $3.4/mt week on week, SteelOrbis has learned.

Trading has been calmer on Thursday and has been concentrated mainly at ports in China. Five deals for 95,000 mt of iron ore have been concluded at trading platform on October 29 and the material will be delivered from Chinese ports. Two biggest deals of 70,000 mt of 62.3 percent PB lump and of 10,000 mt of 62.9 percent Newman blended lump have been concluded at the November 62 percent Fe index and RMB 870/mt ($129.3/mt), delivery during October 30-November 8 and at Jingtang port.

Starting from last Friday, import iron ore prices in China have been going down amid increasing shipments and rising volumes of iron ore supplies arriving at Chinese ports. Meanwhile, capacity utilization rates of Chinese steelmakers’ blast furnaces and steel outputs were relatively stable, while steel inventories were increasing, which resulted in a slackening of demand for iron ore. Bearish sentiments prevailed among market players as they felt pessimistic towards prospects for the future iron ore market in the winter season as steel consumption will decrease. The rebound in iron ore prices over the past two days has been connected with lower weekly shipments from Australia and some improvement in sentiment in the steel market and has been not sustainable, according to sources.   

Iron ore futures prices at Dalian Commodity Exchange have edged up by 0.71 percent today, coming to RMB 779.5/mt ($115.8/mt) compared to October 28, while increasing by 1.76 percent compared to October 22.

On Thursday, rebar futures at the Shanghai Future Exchange are standing at 3,668/mt ($545/mt), increasing by RMB 26/mt ($3.9/mt) or 0.71 percent since October 22, while rising by 0.69 percent compared to the previous trading day.

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 6.7296