Iron ore prices increase visibly amid replenishment talks, futures jump

Import iron ore prices in China have indicated big rises today, Thursday, December 21, while iron ore futures prices increased by 3.53 percent on the same day. Talks about replenishment activities by Chinese mills, which are holding low inventories, have also supported prices, together with some gradual rebound in steel quotations. 

Iron ore fines with 62 percent Fe content have risen by $2.9/mt today to $138.05/mt CFR. This level is $2.8/mt above that seen one week ago. Brazilian iron ore with 65 percent Fe has indicated an increase of $2.75/mt on December 21 to $148.75/mt CFR, while up $2.3/mt week on week, SteelOrbis has learned. 

Nine deals of 257,700 mt have been concluded at Corex, including 170,000 mt of 61 percent of PB fines being dealt at $135.5/mt CFR, with laycan during January 26-February 4.  

Import iron ore prices have seen declines first while indicating rises later this week amid the similar trend in iron ore futures prices. Recently, the safety accident on coal mine made coke prices see several rounds of rises, positively affecting another raw material, like iron ore prices. At the same time, the inventory of iron ore on steelmakers’ side has been at relatively low level, providing certain support to its prices. Market players thought there might be a round of stock replenishment for iron ore ahead of calendar New Year holiday (December 30-January 1) and further Chinese New Year holiday in February, which will exert a positive impact on its prices in the near future. However, steelmakers’ blast furnaces might implement maintenances by the end of the year, especially in Tangshan, which will slacken the demand for iron ore. It is expected that import iron ore prices may edge up slightly in the coming week or fluctuate at the current high levels. 

Iron ore futures prices at Dalian Commodity Exchange have increased by 3.53 percent to RMB 968/mt ($136.3/mt) compared to the previous trading day (December 20), while increasing by RMB 26/mt compared to December 14.  

As of Thursday, December 21, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,988/mt ($562/mt), increasing by RMB 63/mt ($8.9/mt) or up 1.6 percent since December 14, while increasing by 1.27 percent compared to the previous trading day (December 20). 

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 7.1012