Iron ore prices indicate an uptrend, fluctuations not so large

Import iron ore prices in China have moved up today, Thursday, December 15, while they have also indicated slight rises compared to last week amid futures price rises and support from the steel market, while overall demand has not been so strong.

Iron ore fines with 62 percent Fe content have edged up by $2.9/mt today to $112.7/mt CFR. This level is also $2.15/mt above that seen a week ago.

Brazilian iron ore with 65 percent Fe has s by $7.2/mt on December 15 to $128.2/mt CFR, up $5.8/mt week on week, SteelOrbis has learned. Today’s hike has been confirmed in a deal for 80,000 mt of Carajas fines fines with 65 percent Fe content at this price level.

Also, a contract for 80,000 mt for Newman fines with 62 percent Fe has been signed at $112.7/mt CFR.

During the given week, import iron ore prices in the Chinese market have moved up further amid the stimulus policies issued by government to bolster the real estate industry. The delivery of iron ore increased during the given week, while demand from steelmakers slackened due to maintenance works. The inventory of iron ore at ports has increased, while market players think steelmakers will build up stocks ahead of the Chinese New Year, which will provide support for iron ore prices. It is expected that import iron ore prices may fluctuate within a limited range in the coming week.

Iron ore futures prices at Dalian Commodity Exchange have moved up 5.1 percent to RMB 830/mt ($120/mt) compared to December 8, while increasing by 3.23 percent compared to December 14.

As of Thursday, December 15, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,084/mt ($589/mt), rising by RMB 245/mt ($35.3/mt) or up 6.4 percent since December 8, while increasing by 3.31 percent compared to the previous trading day (December 14).

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 6.9343