Iron ore prices resume uptrend amid futures gains, good demand

Iron ore prices have moved up today, May 21, after some declines seen yesterday, while transaction activity at Chinese ports and overall demand in the market have been at decent levels. The uptrend in iron ore futures prices and steel prices has also supported iron ore prices.

Iron ore fines with 62 percent Fe content have moved up today to $97.3/mt CFR, up by $1.3/mt from yesterday and the price level is currently $7.5/mt above last week. Brazilian iron ore with 65 percent Fe has also moved up, to $114.3/mt CFR, with prices edging up by $1.8/mt today, SteelOrbis has learned.

A deal for 90,000 mt of 62.4 percent Fe Newman fines has been concluded at $97.2/mt CFR for shipment during June 21-30.

During the past week, iron ore futures prices have surged by 11.5 percent, providing solid support for sentiment in the iron ore market. Meanwhile, inventory levels at steelmakers are relatively slow and so they need to build up stocks, which will bolster iron ore prices.

Due to the coming National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC), steelmakers in Tangshan have been required to reduce production. But this has not impacted sentiments much for now as market players expect more stimulus for construction and infrastructure from the government, which would support steel demand further.

Iron ore futures prices at Dalian Commodity Exchange have edged up by 2.05 percent today, coming to RMB 722/mt ($102/mt) compared to May 20, while surging by 11.5 percent compared to May 14.

On Thursday, rebar futures at Shanghai Future Exchange have increased by RMB 123/mt ($17.4/mt) or 3.6 percent to RMB 3,568/mt ($503.5/mt) since May 14, while increasing by 0.82 percent compared to the previous trading day.  

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 7.0868