Iron ore prices in China slip below $85/mt CFR amid output restrictions

Iron ore prices in China have dipped again today, Thursday, October 31 due to low demand because Tangshan has started tighter sintering and steelmaking restrictions as of today as the weather forecast has predicted deteriorating air pollution conditions for the days ahead.

Iron ore fines with 62 percent Fe content have lost $0.8/mt today to $84.2/mt CFR, while Brazilian iron ore with 65 percent Fe has decreased by $0.7/mt on the same day to $91.5/mt CFR, SteelOrbis has learned. There have been no reports of deals at trading platforms today. Transactions have been concentrated for material at ports this week. Pilbara fines with 62 percent have been available at RMB 675/mt ($95.7/mt) FOT on Thursday.

At the same time, steel prices have continued to rise gradually amid lower supply volumes. Rebar spot prices have increased by RMB 27/mt ($3.8/mt) today, according to SteelOrbis’ information, while rebar futures at Shanghai Future Exchange have increased by RMB 16/mt ($2.3/mt).  

Currently, in the local Chinese market some steelmakers’ inventories of iron ore are at relatively low levels, which may provide support for iron ore prices and prevent them from recording further sharp drops.

Imported iron ore prices (week-on-week change)

Note：Price Includes VAT  

Nationwide iron ore concentrate prices

Note：Price Includes VAT 

$1 = RMB 7.053