Iron ore prices increase as steel production remains at high levels

Import iron ore prices in China have indicated an overall uptrend today, Thursday, September 14, while also moving up compared to last week, as domestic steel production is still at high levels.

Iron ore fines with 62 percent Fe content have risen by $1.1/mt today to $122.9/mt CFR. This level is $5.75/mt above that seen one week ago. Brazilian iron ore with 65 percent Fe has indicated an increase of $0.75/mt on September 14 to $131.35/mt CFR, while up $4.3/mt week on week, SteelOrbis has learned.

Seven deals for 417,300 mt in total have been concluded at Corex today, including 170,000 mt of 61 percent PB fines and 90,000 mt of 60.8 percent Mac fines transacted at $120.7/mt CFR and $119.5/mt CFR for shipment during November 2-11 and during October 6-15, respectively.

During the given week, import iron ore prices have moved up amid the decreasing deliveries arriving at ports due to the typhoon in southern China. Crude steel output has continued to increase, exerting a positive impact on the demand for iron ore and bolstering ore prices. However, in the latter half of the given week, the relevant government departments in China stated that they will tighten the regulation of iron ore prices and prohibit excessive speculation, which has had some negative impact on prices. The deliveries arriving at ports will increase in the coming period and will likely contribute to higher inventory levels of iron ore. Also, restrictions on crude steel outputs may result in risks for iron ore demand. It is expected that import iron ore prices in the Chinese market will likely edge down in the coming week.

Iron ore futures prices at Dalian Commodity Exchange have risen by 0.82 percent to RMB 863.5/mt ($120/mt) compared to the previous trading day (September 13), while increasing by RMB 27/mt ($3.8/mt) compared to September 7.

As of Thursday, September 14, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,794/mt ($528/mt), decreasing by RMB 1/mt ($0.14/mt) or almost remaining stable since September 7, while rising by 0.56 percent compared to the previous trading day (September 13).

Imported iron ore prices in China (week-on-week basis)

Price includes VAT.

Nationwide iron ore concentrate prices (66 percent Fe)

Price includes VAT.  

$1 = RMB 7.1874