Iron ore prices fluctuate at slightly higher level compared to last week, mood good

Import iron ore prices in China have edged down today, Thursday, January 5, while they have seen small rises compared to last week. The overall mood has been positive in the iron ore market amid positive news regarding government support of steel consumption in China. But the pace of price increases in the iron ore market may be very slow as prices have already increased significantly compared to a month ago.

Iron ore fines with 62 percent Fe content have edged down by $0.1/mt today to $117.05/mt CFR. This level is $1.05/mt above that seen a week ago. Brazilian iron ore with 65 percent Fe has indicated a decline of $0.15/mt on January 5 to $131.55/mt CFR, being almost stable week on week, SteelOrbis has learned.

On January 5, twenty-six deals of 298,500 mt of iron ore have been concluded at ports, including 3,000 mt of 63.93 percent fines at RMB 855/mt ($124.1/mt), delivered to port. 80,000 mt of low-alumina BRBF with 62 percent Fe were traded at $120.1/mt CFR, while 90,000 mt of Newman lumps changed hands at the February index with a $0.115/mt premium.

During the given week, import iron ore prices have moved up slightly amid the relatively low inventory levels, but gains have been limited as prices already posted significant increases in the previous weeks. Following the New Year holiday, the Chinese government held a video conference regarding national financing work, which bolstered market sentiments towards as regards the prospects for the economic development in 2023. Meanwhile, the demand for HRC has been quite good as China’s Ministry of Commerce stated that it will stabilize vehicle consumption and promote household appliance consumption, which will exert a positive impact on the iron ore market. At the same time, ahead of the Chinese New Year holiday (January 21-27), buyers may build up stocks of iron ore and bolster its prices. However, the increasing infections of Covid-19 may negatively affect the demand for iron ore. It is expected that import iron ore prices may edge up slightly in the coming week.

Iron ore futures prices at Dalian Commodity Exchange have edged down by 0.59 percent to RMB 840/mt ($122/mt) compared to December 29, while decreasing by 1.23 percent compared to January 4.

As of Thursday, January 5, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,017/mt ($583/mt), decreasing by RMB 31/mt ($4.5/mt) or 0.8 percent since December 29, while declining by 0.69 percent compared to the previous trading day (January 4).

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 6.8926