Iron ore prices rise for third day in a row, again above $150/mt CFR

Import iron ore prices in China have moved up for the third day in a row on August 26, returning from below $130/mt CFR a week ago to above $150/mt CFR. The main reason behind the rebound was the higher crude steel production reported for mid-August and expectations of some demand improvement in China in September.

Iron ore fines with 62 percent Fe content have edged up by $2.95/mt compared to August 25, to $150.85/mt CFR. The week-on-week increase reached $22.15/mt compared to August 19. Brazilian iron ore with 65 percent Fe has increased by $0.7/mt today to $167.9/mt CFR, up $14.4/mt week on week, SteelOrbis has learned.

On August 26, a deal for 170,000 mt of low alumina 62 percent BRBF fines, for shipment during September 20-29 was done at $153.8/mt CFR.

During the given week, import iron ore prices have improved amid decreasing iron ore shipments and reports of higher crude steel production. The China Iron and Steel Association (CISA) announced that in mid-August (August 11-20) this year the average aggregate daily crude steel output of large and medium-sized steel enterprises in China - all CISA members – increased by 4.6 percent from the previous period to 2.14 million mt, while finished steel output rose by seven percent. Demand for iron ore has been moderate this week, but the outlook has improved as some rebound is expected to be seen in the finished steel market in September. Miners have been seeking to increase their prices due to the rebounding trend seen in iron ore futures prices. Moreover, the higher margins of steelmakers in China are seen to be supporting iron ore prices.

Iron ore futures at Dalian Commodity Exchange (main contract i2201) have moved up by 0.74 percent today, coming to RMB 816/mt ($126.1/mt) compared to August 25, while increasing by RMB 53.5/mt ($11.6/mt) or 7.0 percent compared to August 19.

As of Thursday, August 26, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,108/mt ($789.5/mt), increasing by RMB 91/mt ($14.1/mt) or 1.8 percent since August 19, while decreasing by 2.52 percent compared to the previous trading day (August 25).

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 6.473