Iron ore prices rebound today, but down sharply week on week

Import iron ore prices in China have moved up today, Thursday, June 23, amid the rebound in futures prices and much better spot trading, while they indicated a sharp decline week on week, taking into account the declines earlier this week.  

Iron ore fines with 62 percent Fe content have moved up by $7.1/mt today to $116.1/mt CFR. Moreover, this level is $13.7/mt below that seen a week ago. Brazilian iron ore with 65 percent Fe has risen by $5.15/mt today to $135.15/mt CFR, down $15.6/mt week on week, SteelOrbis has learned.

On June 23, the trading in both port and seaborne market improved. The highest-priced deal was done for 170,000 mt of Pilbara fines with 62 percent Fe at $118.25/mt CFR. Also, a contract for 62 percent Fe Pilbara fines was done at $113.5/mt CFR today. 80,000 mt of Newman fines with 62 percent Fe were traded at $114.8/mt CFR. Higher grade ore from Brazil with 65 percent Fe (170,000 mt) has been sold at the July index + $2/mt.   

During the given week, import iron ore prices moved down amid slack demand and the prevailing bearish sentiments among market players. Finished steel prices have moved down and consumption has declined, which has reduced demand for import iron ore. Recently, many steelmakers announced that they will reduce production in the near future, aiming to bolster steel prices.

But on Thursday, iron ore prices have posted a strong rise, reflecting the rebound in futures prices and much stronger demand. As a result, the outlook for the coming week is mixed. Some sources think that import iron ore prices in the Chinese market will likely edge down slightly in the coming week as the fundamentals on the demand side will be weak, while some said that some gradual rebound is possible as prices have fallen too low. 

Iron ore futures prices at Dalian Commodity Exchange have increased by 2.46 percent today to RMB 749.5/mt ($111.7/mt), while declining by 13.6 percent compared to June 16.

As of Thursday, June 23, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,235/mt ($631.0/mt), decreasing by RMB 271/mt ($40.4/mt) or 6.01 percent since June 16, while rising by 1.56 percent compared to the previous trading day (June 22).

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 6.7079