Iron ore prices in China have indicated declines over the past week due to high supply and weakening demand, though prices have softened only slightly as higher freight rates are providing some support.
The price for iron ore fines with 62 percent Fe content stands at $99.15/mt CFR, up $0.6/mt from yesterday day, but the level is $2.4/mt below that seen a week ago. Prices of fines with 65 percent Fe content have settled at $113/mt CFR, $1/mt higher compared to yesterday, but $2.35/mt lower over the past week. The price increases today are mainly due to the increases in freight rates globally seen lately, but the overall demand-supply imbalance in China continues to be observed.
32 deals totaling 571,400 mt of iron ore have been signed at the Corex platform on July 23. In particular, 170,000 mt of 61 percent Fe PB fines have been sold at $97.45/mt CFR for shipment during September 3-12, and 30,000 mt of 61.5 percent Minmetals standard fines have been transacted at RMB 700/mt ($103.1/mt), for delivery at Caofeidian port.
On July 23, Corex's Iron Ore Portside Index (61% Fe Qingdao) and Iron Ore Portside Index (61% Fe Caofeidian) are at RMB 699/wmt and RMB 704/wmt, with the USD/dmt equivalents standing at $95.81 and $95.83.
During the given week, import iron ore prices have moved on a downward trend amid the increasing arrivals at ports. The relatively plentiful supply of iron ore has weakened the support for prices. Meanwhile, steelmakers have mostly been incurring losses in the traditional off-season, which has slackened the demand for iron ore and dragged down prices. Global iron ore shipments are anticipated to pick up in the coming week, which will lead to further increases in arrivals at Chinese ports, likely exerting a negative impact on prices. 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 0.74 percent today to RMB 747.5/mt ($110.1/mt) compared to the previous trading day, July 22, while decreasing by 1.6 percent compared to July 16.
As of July 23, rebar futures at Shanghai Futures Exchange are standing at RMB 3,085/mt ($454/mt), decreasing by RMB 30/mt ($4.4/mt) or 1.0 percent since July 16, while up 0.06 percent compared to the previous trading day, July 22.
Imported iron ore prices in China (week-on-week basis)
| Product name | Iron Content |
Truck loaded price (RMB/mt) |
Change (RMB/mt) |
Price ($/mt) |
Change ($/mt) |
| Newman iron ore lump | 63/63.5 | 889 | -4 | 130.9 | -0.6 |
| Yandi fines | 58 / 59 | 684 | -10 | 100.7 | -1.5 |
| PB Fines | 62 | 698 | -10 | 102.8 | -1.5 |
| PB iron ore lump | 62/63 | 898 | -7 | 132.2 | -1.0 |
| Brazil fines | 63 | 759 | -10 | 111.8 | -1.5 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
| Place of origin | Market price （RMB/mt, Incl. VAT) | Change (RMB/mt) |
Price（$/mt) | Change ($/mt) |
| Tangshan | 878 | -6 | 129 | -1 |
| Beipiao | 842 | 0 | 124 | 0 |
Price includes VAT.
$1 = RMB 6.7906
