Iron ore prices in China drop today, move up week on week

Import iron ore prices in China have seen declines today, Thursday, December 5, while iron ore futures prices have risen by 1.84 percent compared to November 28, resulting in a slight increase in spot prices for iron ore week on week. In general, the market is supported by relatively high steel output and positive expectations for the Chinese government meeting next week, while the fundamentals are still rather weak.

Iron ore fines with 62 percent Fe content have indicated a drop of $1.7/mt on December 5 to $104.8/mt CFR. This level is $0.8/mt above that seen on November 28. Brazilian iron ore with 65 percent Fe has decreased by $1.65/mt today to $118.9/mt CFR, while up just $0.1/mt week on week, SteelOrbis has learned.

10 deals for a total of 258,000 mt of iron ore have been transacted at the Corex platform on December 5. In particular, 170,000 mt of PB fines have been sold at the January index plus $1.5/mt.

During the given week, import iron ore prices in the Chinese domestic market have continued their slight uptrend amid increasing iron ore futures prices. Market players’ expectation for stock replenishment during the winter and the destocking of iron ore at ports have firmly bolstered iron ore prices. Recently, steelmakers’ losses have increased, resulting in decreasing molten iron outputs, which will slacken the demand for iron ore in the near future. Also, higher grade ore prices have been impacted more than lower grade ore prices. However, downstream steelmakers will build up some stocks in the near future, which will exert a positive impact on iron ore prices. It is expected that import iron ore prices in the Chinese domestic market will edge up slightly in the coming week. 

Iron ore futures prices at Dalian Commodity Exchange have decreased by 1.17 percent today at RMB 800.5/mt ($111.3/mt) compared to the previous trading day, December 4, while increasing by RMB 14.5/mt ($2.0/mt) compared to November 28. 

As of December 5, rebar futures at Shanghai Futures Exchange are standing at RMB 3,280/mt ($456/mt), decreasing by RMB 32/mt ($4.5/mt) or 0.97 percent since November 28, while down 1.41 percent compared to the previous trading day, December 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 7.1879