Import iron ore prices in China have moved up today, Thursday, July 1, compared to June 30 and also to a week ago, as crude steel production in a number of Chinese provinces is expected to go down in the second half of the year, which will support steel prices and the profits of mills.
Iron ore fines with 62 percent Fe content have edged up by $4/mt compared to June 30, to $217.3/mt CFR. This level is $4.5/mt higher than seen a week ago on June 24. Brazilian iron ore with 65 percent Fe has seen a rise of $1.2/mt today to $252.5/mt CFR, up $5.3/mt week on week, SteelOrbis has learned.
Two deals have been done at the GlobalOre platform today. A contract for 170,000 mt of Pilbara fines has been closed at the August index + $11.65/mt, while another deal for the same volume of BRBF fines with low alumina content has been signed at the August index + $14.7/mt.
At Chinese ports, four deals for 40,000 mt of iron ore have been concluded on July 1 at COREX. The deals were respectively for 10,000 mt of 60.68 Fe content percent Jimblebar blended fines, 56.25 percent fines, 61.08 percent Mac fines and 61.28 percent PB fines, at RMB 1,315/mt ($203/mt), RMB 945/mt ($146/mt), RMB 1,410/mt ($218/mt) and RMB 1,485/mt ($229.5/mt), for delivery at Tianjin port, Tianjin port, Rizhao port and Rizhao port, respectively.
During the given week, import iron ore prices have edged up slightly amid declining deliveries in the global market and reduced iron ore volumes arriving in the spot market. However, due to the 100th anniversary of the founding of Communist Party of China, the capacity utilization rates of blast furnaces in China have decreased, which has exerted some negative impact on demand for iron ore.
A number of Chinese provinces like Anhui, Hunan and others have announced that they will reduce crude steel production in the second half of the year, which is going to support steel prices and the profits of mills, sources believe. And while this also means lower demand for iron ore, the news has provided support for the current spot prices, though some market sources doubt that iron ore prices will remain strong for a long time.
Iron ore futures prices at Dalian Commodity Exchange have moved up by 1.08 percent today, coming to RMB 1166/mt ($179.7/mt) compared to June 30, while rising by RMB 1.5/mt ($0.23/mt) or 0.13 percent compared to June 24.
As of Thursday, July 1, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,146/mt ($795/mt), increasing by RMB 213/mt ($33/mt) or 4.3 percent since June 24, while increasing by 0.76 percent compared to the previous trading day (June 30).
Imported iron ore prices in China (week-on-week basis)
Product name |
Iron |
Truck loaded price |
Change |
Price |
Change |
Newman iron ore lump |
63/63.5 |
1,860 |
5 |
287.4 |
1.3 |
Yandi fines |
58 / 59 |
1,175 |
1 |
181.6 |
0.5 |
PB Fines |
62 |
1,485 |
10 |
229.5 |
1.9 |
PB iron ore lump |
62/63 |
1,890 |
5 |
292.1 |
1.3 |
Brazil fines |
63 |
1,600 |
0 |
247.3 |
0.4 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
Place of origin |
Market price (RMB/mt, Incl. VAT) |
Change |
Price($/mt) |
Change |
Tangshan |
1,401 |
10 |
217 |
2 |
Beipiao |
1,379 |
0 |
213 |
0 |
Price includes VAT.
$1 = RMB 6.4709