Iron ore prices in China have edged down over the past week due to stronger pressure from falling futures prices, the negative outlook and the slightly greater influence of Chinese mills’ price policies on negotiations.
The price for iron ore with 62 percent Fe content has settled at $105.95/mt CFR, losing as much as $3/mt from the previous day, which is the lowest level since March 8. Week on week, the price has fallen by $3.55/mt, meaning that the main decline happened today and is closely linked to the drop in futures prices. Fines with 65 percent Fe content are at $122.6/mt CFR, down by $3.1/mt from the previous day and down by as much as $3.6/mt over the past week.
26 deals totaling 373,700 mt of iron ore have been done at the Corex platform on April 9.
In particular, 11,000 mt of 56.35 percent Fe FMG ultra fines were transacted at RMB 657/mt ($95.7/mt), for delivery at Tianjin port, while 10,000 mt of 60.72 percent Fe fines were sold at RMB 763/mt ($111.2/mt), for delivery at Caofeidian port.
On April 9, Corex’s Iron Ore Portside Index (61% Fe Qingdao) and Iron Ore Portside Index (61% Fe Caofeidian) are at RMB 747/wmt and RMB 761/wmt, with the USD/dmt equivalents standing at $101.58 and $102.86.
During the given week, import iron ore prices have moved down amid decreasing futures prices and rather weak fundamentals. In general, steel production has been rather high lately after the small decline seen in March, which is a positive sign for the iron ore market.
The ongoing tensions in the Middle East have pushed up other countries’ steel export prices, highlighting the cost advantage of Chinese steel exports and exerting a positive impact on China’s molten iron production. However, the outlook is not so great since, with the current high iron ore inventories at ports, Chinese steel producers are not increasing seaborn purchases as expected.
On the other hand, shipments of seaborne iron ore are expected to increase in the coming week, while iron ore arriving at ports has also gone up. It is expected that iron ore prices in the Chinese market will move sideways in the coming week, with only small negative corrections possible from the current levels.
Iron ore futures prices at Dalian Commodity Exchange have decreased by 2.53 percent today to RMB 750/mt ($109.3/mt) compared to the previous trading day, April 8, while declining by 3.9 percent compared to April 2 (main futures contract has shifted from i2605 to i2609: the change was based on the same contract - i2609).
As of April 9, rebar futures at Shanghai Futures Exchange are standing at RMB 3,096/mt ($449/mt), decreasing by RMB 10/mt ($1.4/mt) or 0.3 percent since April 2, while down 0.42 percent compared to the previous trading day, April 8.
Imported iron ore prices in China (week-on-week basis)
| Product name | Iron Content |
Truck loaded price (RMB/mt) |
Change (RMB/mt) |
Price ($/mt) |
Change ($/mt) |
| Newman iron ore lump | 63/63.5 | 852 | -24 | 124.1 | -3.1 |
| Yandi fines | 58 / 59 | 745 | -11 | 108.5 | -1.2 |
| PB Fines | 62 | 759 | -11 | 110.6 | -1.2 |
| PB iron ore lump | 62/63 | 878 | -11 | 127.9 | -1.2 |
| Brazil fines | 63 | 789 | -15 | 114.9 | -1.8 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
| Place of origin | Market price （RMB/mt, Incl. VAT) | Change (RMB/mt) |
Price（$/mt) | Change ($/mt) |
| Tangshan | 872 | 4 | 127 | 1 |
| Beipiao | 853 | 0 | 124 | 0 |
Price includes VAT.
$1 = RMB 6.8649
