Iron ore prices may gain support after easing of steel output curbs

Import iron ore prices in China have edged down slightly this week, while they have posted some slight increases over the past few days. Sluggish demand amid production curb in Tangshan has been affecting prices this week, but it may improve in the near future as restrictions have eased recently.

Today, Thursday, March 18, iron ore fines with 62 percent Fe content have moved up by just $0.1/mt compared to March 17, to $166/mt CFR. However, this level is $4.4/mt below that seen a week ago on March 11. Brazilian iron ore with 65 percent Fe has remained at $192.6/mt CFR, stable from yesterday, but down $1.9/mt week on week, SteelOrbis has learned.

Import iron ore prices were negatively affected by the production curbs on steelmakers in Tangshan in the first part of the given week, while the loosening of production restrictions has exerted a positive impact on demand for import iron ore. Starting from late this week, some mills in Tangshan area under the categories B and C will be restricted from working at utilization rates below 70 percent, but this is higher than earlier in February.

Iron ore futures prices at Dalian Commodity Exchange have moved up by 2.45 percent today, coming to RMB 1089/mt ($168/mt) compared to March 17, while declining by 0.4 percent compared to March 11.

As of Thursday, March 18, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,759/mt ($732/mt), increasing by RMB 72/mt ($11/mt) or 1.54 percent since March 11, while rising by 0.44 percent compared to the previous trading day (March 17).

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 6.4859