Iron ore prices lose ground rapidly

Import iron ore prices in China have moved down on May 12, falling sharply from the previous day and week on week as demand has remained limited during the week and falling futures prices have been reflecting the weak outlook.

Iron ore fines with 62 percent Fe content have moved down by $6/mt today to $127/mt CFR. This level is $18.15/mt below that seen a week ago. Brazilian iron ore with 65 percent Fe has decreased by $6.4/mt on May 12 to $151.1/mt CFR, down $19.4/mt week on week, SteelOrbis has learned.

On May 12, demand from ports has improved with 16 deals for a total of 248,700 mt of iron ore being concluded at Corex. In particular, PB fines have been transacted at RMB 910/mt ($135.2) and RMB 930/mt ($138.2/mt) in Hebei Province.

During the given week, import iron ore prices have indicated a downward trend. The iron ore volume arriving at ports has increased, while transportation conditions improved further in some regions of China amid the easing of the Covid-19 restrictions. However, steelmakers have been cautious in concluding purchases for import iron ore due to their shrinking profitability. Since the Covid-19 pandemic continues in some regions of China, demand for steel will unlikely see significant improvement. It is thought that import iron ore prices in the Chinese domestic market will fluctuate within a limited range in the coming week.

Iron ore futures prices at Dalian Commodity Exchange have edged down by 1.36 percent today to RMB 796/mt ($118.3/mt), while declining by 8.7 percent compared to May 5.

As of Thursday, May 12, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,612/mt ($685.3/mt), decreasing by RMB 311/mt ($46.2/mt) or 6.3 percent since May 5, while declining by 0.99 percent compared to the previous trading day (May 11).

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 6.7292