Iron ore prices in China have fluctuated in a limited range over the past week, partially supported by supply concerns due to the expected strike at BHP. However, in general, the outlook has remained bearish due to weak demand and the imbalanced market.
The price for iron ore fines with 62 percent Fe content has lost $0.3/mt today, July 9, compared to yesterday, coming to $100.3/mt CFR, which is slightly higher by $0.75/mt compared to a week ago. At the same time, prices of fines with 65 percent Fe content are standing at $114/mt CFR, down by $0.2/mt from both yesterday and a week ago.
24 deals totaling 415,700 mt of iron ore have been signed at the Corex platform on July 9. In particular, 90,000 mt of 60.5 percent Fe fines were transacted at $97.1/mt CFR, for shipment during August 1-10, 30,100 mt of 65.01 percent Fe Venezuelan fines were transacted at RMB 857/mt ($125.8/mt), for delivery at Tianjin port, and 30,000 mt of 61.91 percent Fe fines were sold at RMB 745/mt ($109.4/mt), for delivery at Huanghua port.
On July 9, Corex’s Iron Ore Portside Index (61% Fe Qingdao) and Iron Ore Portside Index (61% Fe Caofeidian) are at RMB 698/wmt and RMB 713/wmt, with the US$/dmt equivalents standing at $95.33 and $96.76.
During the given week, import iron ore prices have fluctuated within a limited range. Demand for finished steel has been slack, resulting in increasing inventories, which have exerted a negative impact on the iron ore market. Molten iron output is anticipated to decline from its peak levels, which will weaken the support for iron ore prices. Meanwhile, the delivery of seaborn iron ore is expected to increase in the coming week, which will negatively affect prices from the supply side.
However, the recent stabilization of iron ore prices has been supported by some supply concerns for the coming months. As SteelOrbis reported yesterday, hundreds of workers at Australian miner BHP’s Port Hedland iron ore operations in Western Australia may stage an eight-hour work stoppage on July 16, following six months of unsuccessful negotiations over a new four-year labor agreement.
It is thought that iron ore prices in the Chinese market will soften in the coming week.
Iron ore futures prices at Dalian Commodity Exchange have risen by 0.27 percent today to RMB 745.5/mt ($109.5/mt) compared to the previous trading day, July 8, while rising by 0.7 percent compared to July 2.
As of July 9, rebar futures at Shanghai Futures Exchange are standing at RMB 3,091/mt ($450/mt), increasing by RMB 24/mt ($4.6/mt) or 0.8 percent since July 2, while up 0.1 percent compared to the previous trading day, July 8.
Imported iron ore prices in China (week-on-week basis)
| Product name | Iron Content |
Truck loaded price (RMB/mt) |
Change (RMB/mt) |
Price ($/mt) |
Change ($/mt) |
| Newman iron ore lump | 63/63.5 | 881 | 6 | 129.5 | 0.9 |
| Yandi fines | 58 / 59 | 688 | -2 | 101.1 | -0.3 |
| PB Fines | 62 | 702 | -2 | 103.2 | -0.3 |
| PB iron ore lump | 62/63 | 898 | 13 | 132.0 | 1.9 |
| Brazil fines | 63 | 762 | -5 | 112.0 | -0.7 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
| Place of origin | Market price （RMB/mt, Incl. VAT) | Change (RMB/mt) |
Price（$/mt) | Change ($/mt) |
| Tangshan | 878 | 5 | 129 | 1 |
| Beipiao | 842 | 0 | 124 | 0 |
Price includes VAT.
$1 = RMB 6.8036
