Iron ore prices in China have indicated decreases in the past week since, even though demand has been rather firm after the May holidays, declines in steel prices together with rumors about steel production cuts have put pressure on sentiments. The escalation in overseas tariff barriers will lead to a fall in exports of steel and manufactured goods, which will further exacerbate the surplus in the steel market.
Today, May 8, prices for ex-Australia iron ore fines with 62 percent Fe content are at $97.45/mt CFR, down by $1.65/mt from the previous day, while down by $0.1/mt compared to April 30, the last day before the holiday. Also, ex-Brazil fines with 65 percent Fe are priced at $108.95/mt CFR, $1.9/mt lower than on May 7, while also $0.25/mt lower compared to April 30.
30 deals totaling 610,800 mt of iron ore have been signed at the Corex platform on May 8, reflecting stock replenishment following the holiday. In particular, 190,000 mt of 56.5 percent Fe FMG ultra special powder was transacted at the June 62 percent index -12.5 percent, for shipment during June 3-12. Also, 80,000 mt of 61.7 percent Fe Newman fines were sold at the July index + $1.5/mt, for shipment during May 26-June 4. In addition, 45,000 mt of 61.59 percent fines was sold at RMB 755/mt (104.9/mt), for delivery at Tianjin port.
During the first week of May, import iron ore prices have edged down amid the prevailing wait-and-see stance among downstream buyers. Some steelmakers have replenished stocks following the Labor Day holiday, while their capacity utilization rates will unlikely rise further, exerting a negative impact on the demand for iron ore. The market has been actively discussing possible crude steel production cuts by mills from June as the government is aiming to prevent mills from incurring losses and wants to see a more balanced market. However, no further details of mandatory cuts have been disclosed so far.
The delivery of iron ore in the global market is expected to decrease slightly in the coming week, which will result in declines in inventory levels, likely providing some support for ore prices. However, southern China is gradually entering the rainy season, which will weaken the demand for steel and exert a negative impact on iron ore prices. It is expected that import iron ore prices in the Chinese market will fluctuate within a limited range in the coming week.
Iron ore futures prices at Dalian Commodity Exchange have declined by 2.73 percent today to RMB 693.5/mt ($96.3/mt) compared to the previous trading day, May 7, while decreasing by 3.75 percent compared to April 24.
As of May 8, rebar futures at Shanghai Futures Exchange are standing at RMB 3,052/mt ($431/mt), decreasing by RMB 54/mt ($7.5/mt) or 1.74 percent since April 24, while down 1.74 percent compared to the previous trading day, May 8.
Imported iron ore prices in China (2 weeks change basis)
| Product name | Iron Content |
Truck loaded price (RMB/mt) |
Change (RMB/mt) |
Price ($/mt) |
Change ($/mt) |
| Newman iron ore lump | 63/63.5 | 889 | 0 | 123.4 | 0.1 |
| Yandi fines | 58 / 59 | 731 | -9 | 101.4 | -1.2 |
| PB Fines | 62 | 760 | -9 | 105.5 | -1.2 |
| PB iron ore lump | 62/63 | 901 | -4 | 125.0 | -0.5 |
| Brazil fines | 63 | 771 | -10 | 107.0 | -1.3 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
| Place of origin | Market price （RMB/mt, Incl. VAT) | Change (RMB/mt) |
Price（$/mt) | Change ($/mt) |
| Tangshan | 842 | -3 | 117 | 0 |
| Beipiao | 802 | 0 | 111 | 0 |
Price includes VAT.
$1 = RMB 7.2073