Iron ore prices rebound from recent lows

Import iron ore prices in China have moved up today, Thursday, March 11, following the sharp declines over the previous few days. The better outlook for the steel market has supported iron ore prices. Meanwhile, prices for iron ore have declined compared to last week due to the production curbs in Tangshan.

Iron ore fines with 62 percent Fe content have moved up by $6.7/mt compared to March 10, to $170.4/mt CFR. However, this level is $7.2/mt below that seen a week ago on March 4. Brazilian iron ore with 65 percent Fe has risen by $5.7/mt today to $194.5/mt CFR, but are down $8.4/mt week on week, SteelOrbis has learned.

Today, about 90,000 mt of Mac fines from Australia with 61 percent Fe content have been sold at $167.6/mt CFR for shipment on April 6-15.

Also, on March 11 at Chinese ports, two deals were for 20,000 mt of 61.3 percent PB fines at RMB 1,079/mt ($166/mt) CFR at Caofeidian port, and for about 20,000 mt of PB fines at RMB 1,140/mt ($175.4/mt) at Qingdao port.

During the given week, some regions, including Tangshan, the key steel production hub in China, implemented production curbs, weakening the demand for import iron ore and dragging down prices. Meanwhile, big declines have been seen in the Chinese stock market, also negatively affecting market player’ sentiments.

However, following big declines in import iron ore prices in the first part of the week, iron ore prices have seen a rebounding trend over the past few days. The support came from the good outlook for the steel market with rebar prices increasing today. Since the production curbs will likely continue, iron ore demand is unlikely to be strong in the coming week.

Also, some supply issues have supported the sentiment in the iron ore market today. Export shipments from Port Hedland in Australia dropped to 30.73 million mt in February, much lower than 35.6 million mt in January and 33.3 million mt in February 2020.

Iron ore futures prices at Dalian Commodity Exchange have moved up by 5.55 percent today, coming to RMB 1,093.5/mt ($168.2/mt) compared to March 10, while declining by RMB 81/mt or 6.9 percent compared to March 4.

As of Thursday, March 11, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,687/mt ($721/mt), decreasing by RMB 162/mt or 3.3 percent since March 4, while rising by 1.96 percent compared to the previous trading day (March 10).

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 6.497