Iron ore prices in China have fluctuated within a limited range over the past week, but today some small increase has happened after news about ban on some low-grade fines of FMG emerged.
Price for iron ore fines with 62 percent Fe content is at $99.55/mt CFR today, up by $0.75/mt over a day and also up by $0.6/mt over the week. At the same time, prices of fines with 65 percent Fe content have been at $114.2/mt CFR, adding $0.7/mt over a day and $0.2/mt over the week.
41 deals totaling 564,500 mt of iron ore have been signed at the Corex platform on July 2. In particular, 50,000 mt of 61.94 percent Fe fines reached at RMB 866/mt ($127.2/mt), delivery at Lanshan port, 30,000 mt of 60.69 percent Fe fines transacted at RMB 690/mt ($101.3/mt), delivery at Beilun port, and 30,000 mt of 61.69 percent Fe lump dealt at RMB 855/mt ($125.6/mt), delivery at Qingdao port.
On July 2, Corex Iron Ore Portside Index (61% Fe Qingdao) and Iron Ore Portside Index (61% Fe Caofeidian) are at RMB 696/wmt and RMB 710/wmt, with USD/dmt equivalence standing at $95.12 and $96.41.
During the given week, import iron ore prices have edged down first while rebounding later. The delivery of seaborne ore increased slightly, while the molten iron output also indicated slight rises. But on July 2, the talks about CMRG banning Super Special Fines and Fortune Fines, lower-grade iron ore products supplied by Fortescue, emerged, and deliveries of these products will be forbidden from July 15. Super Special Fines (SSF) is a low-grade fines with Fe content usually slightly below 58 percent. So. It is expected that prices for low grade fines – from 56 percent to 61 percent – will be supported in the near future.
But there are no hopes for iron ore market to rebound in general in the near future as inventories of finished steel have increased significantly in the given period amid widespread rainy weather and high temperatures in the traditional off-season, which exerted a negative impact on the demand for iron ore.
Iron ore futures prices at Dalian Commodity Exchange have risen by 0.48 percent today to RMB 740/mt ($108.7/mt) compared to the previous trading day, July 1, while rising by 0.7 percent compared to June 25.
As of July 2, rebar futures at Shanghai Futures Exchange are standing at RMB 3,067/mt ($450/mt), decreasing by RMB 31/mt ($4.6/mt) or 1.0 percent since June 25, while down 0.2 percent compared to the previous trading day, July 1.
Imported iron ore prices in China (week-on-week basis)
| Product name | Iron Content |
Truck loaded price (RMB/mt) |
Change (RMB/mt) |
Price ($/mt) |
Change ($/mt) |
| Newman iron ore lump | 63/63.5 | 875 | 2 | 128.5 | 0.5 |
| Yandi fines | 58 / 59 | 690 | -2 | 101.3 | -0.1 |
| PB Fines | 62 | 704 | -2 | 103.4 | -0.1 |
| PB iron ore lump | 62/63 | 885 | 2 | 130.0 | 0.5 |
| Brazil fines | 63 | 767 | 0 | 112.6 | 0.2 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
| Place of origin | Market price （RMB/mt, Incl. VAT) | Change (RMB/mt) |
Price（$/mt) | Change ($/mt) |
| Tangshan | 873 | -5 | 128 | -1 |
| Beipiao | 842 | 0 | 124 | 0 |
Price includes VAT.
$1 = RMB 6.8088
