Iron ore prices fluctuate within a limited range, uptrend not sustainable

Import iron ore prices in China have moved down today, Thursday, June 30 as the demand outlook is not bright. Prices have indicated increases compared to last week, but just slightly as the uptrend failed to be sustainable even despite rises in futures prices.  

Iron ore fines with 62 percent Fe content have moved down by $3.8/mt today to $119/mt CFR. However, this level is still $2.9/mt above that seen a week ago. Brazilian iron ore with 65 percent Fe has declined by $3.7/mt today to $136.1/mt CFR, up $0.95/mt week on week, SteelOrbis has learned.

On June 30, 11 deals for 112,000 mt of iron ore have been concluded at ports. A contract for 90,000 mt of Newman fines with 62 percent Fe has been signed at $120.25/mt CFR today.

During the given week, import iron ore prices have fluctuated within a limited range, with an upward bias. Following previous declines in billet prices, better sentiments have prevailed among market players.

However, the information about Tangshan’s stricter environmental protection has increased the downward pressure on iron ore prices. However, the central government reiterated that it would boost China’s economic development during the whole of the current year, exerting a positive impact on the iron ore market. It is thought that import iron ore prices may move sideways in the coming week.

Iron ore futures prices at Dalian Commodity Exchange have decreased by 2.22 percent today to RMB 791/mt ($118/mt), while up by 5.5 percent compared to June 23.

As of Thursday, June 30, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,378/mt ($652.5/mt), increasing by RMB 143/mt ($21.3/mt) or 3.4 percent since June 23, while rising by 0.18 percent compared to the previous trading day (June 29).

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 6.7114