Iron ore prices have edged up slightly again today, January 2, as some steelmakers have been building up stocks, pushing up demand, even though fresh production restrictions have been announced in northern and eastern China. Iron ore fines with 62 percent Fe content have gained $1/mt today to $93.1/mt CFR, while Brazilian iron ore with 65 percent Fe has also gained $1/mt compared to the previous working day (December 31) to $105.2/mt CFR, SteelOrbis has learned.
A deal for 170,000 mt of 62 percent Fe PB fines has been concluded on January 2 at the February index + $1.1/mt for shipment during January 26-February 4. Moreover, a contract at GlobalOre for 170,000 mt of Brazilian blended fines has been concluded at $94.35/mt CFR for shipment in first half of February.
More steelmakers in China have been building up stocks for winter, resulting in better transaction activities, especially in ports. Meanwhile, steelmakers’ capacity utilization rates have risen slightly.
Nevertheless, the local provincial governments in Hebei and Shandong have announced another round of emissions restrictions (orange alert), which will put pressure on overall steel production. Taking into account sluggish domestic demand from the construction sector, most market sources have said that the restrictions will not have a significant negative impact.
Meanwhile, steelmakers’ stock replenishment will continue in the near future as there are still some working days left ahead of the Chinese New Year holiday. Moreover, the People's Bank of China (PBC) has decided to lower the required reserve ratio for financial institutions by 0.5 percentage points as of January 6, 2020, which will ease financial tightness and exert a positive impact on transaction activities in the iron ore market.
Iron ore futures prices at Dalian Commodity Exchange have gained RMB 9.0/mt ($1.3/mt) or 1.39 percent today coming to RMB 655.5/mt ($94.2/mt) compared to December 31, while rising by 2.5 percent compared to December 26.
Nevertheless, rebar futures at Shanghai Future Exchange have lost RMB 11/mt ($1.6/mt) or 0.31 percent on Thursday compared to the previous trading day, while increasing by RMB 18/mt ($2.6/mt) or 0.5 percent since December 26.
Imported iron ore prices
|
Product Name |
Port |
Iron Content |
Truck loaded price (RMB/mt) |
Weekly Change (RMB/mt) |
Price ($/mt) |
Weekly Change ($/mt) |
|
Newman iron ore lump |
Qingdao |
63/63.5 |
843 |
+5 |
121.1 |
+1 |
|
Yandi fines |
58/59 |
595 |
+8 |
85.5 |
+1.4 |
|
|
PB Fines |
62 |
674 |
+15 |
96.8 |
+2.4 |
|
|
PB iron ore lump |
62/63 |
841 |
+5 |
120.8 |
+1 |
|
|
Brazil fines |
63 |
707 |
+18 |
101.6 |
+2.9 |
Prices include VAT.
Nationwide 65 percent Fe iron ore concentrate prices
|
Place of Origin |
Market price (RMB/mt, Incl. VAT) |
Weekly Change (RMB/mt) |
Price ($/mt) |
Weekly Change ($/mt) |
|
|
Tangshan |
742 |
0 |
107 |
0 |
|
|
Beipiao |
644 |
+22 |
93 |
+3 |
Prices include VAT.
$1 = RMB 6.9614