Iron ore prices for China have continued to move up today, November 14, with a $2.2/mt increase seen in the market in the middle-grade segment, while prices for higher grade iron ore have been moving up at a faster rate due to supply concerns.
Iron ore fines with 62 percent Fe content have gained $2.2/mt today to $83.1/mt CFR, while Brazilian iron ore with 65 percent Fe has gained $3.5/mt to $95.8/mt CFR, SteelOrbis has learned.
A price increase in high grade iron ore segment has been confirmed in fresh deals. At GlobalOre platform, there have been two deals for 120,000 mt and 80,000 mt of Brazilian Carajas fines with 65 percent Fe content both at $95.8/mt CFR. The recent announcement of Vale that iron ore production and sales will be lower in the first quarter at 70-75 million mt compared to 83-88 million mt in the fourth quarter of 2019 has boosted demand for Brazilian material.
Moreover, China has issued air pollution control programs for the 2019-20 winter season for the Yangtze River Delta area and the Fenwei plain area, including the provinces of Shanxi, Shaanxi and Henan, exerting a positive impact on the steel market and the iron ore market.
Iron ore futures prices at Dalian Commodity Exchange have gained RMB 10.5/mt ($1.5/mt) or 1.73 percent today, coming to RMB 618.5/mt ($88.4/mt), signaling bullish sentiment towards the prospects for the iron ore market.
Rebar futures at Shanghai Future Exchange have increased by RMB 69/mt ($9.9/mt) or two percent compared to the previous trading day.
Iron ore deliveries from Australian and Brazilian miners have decreased slightly, while but is still at high levels. Though Chinese steel output will likely decrease in the future due to production restrictions, demand for steel is at quite good levels due to the boost from infrastructure construction, which will provide support for iron ore prices, sources said.
Imported iron ore prices (week-on-week basis)
|
Product Name |
Port |
Iron |
Place of origin |
Truck loaded price |
Change |
Price |
Change |
|
Newman iron ore lump |
Qingdao |
63/63.5 |
Australia |
768 |
-24 |
109.6 |
-3.4 |
|
Brazil fines |
63 |
Brazil |
645 |
-42 |
92.0 |
-6.0 |
|
|
Yandi fines |
58 / 59 |
Australia |
546 |
-34 |
77.9 |
-4.9 |
|
|
PB Fines |
62 |
Australia |
622 |
-28 |
88.8 |
-4.0 |
|
|
PB iron ore lump |
62/63 |
Australia |
762 |
-28 |
108.7 |
-4.0 |
Note：Price Includes VAT
Nationwide iron ore concentrate prices
|
Product Name |
Specification |
Place of Origin |
Market price （RMB/mt, Incl. VAT) |
Change |
Price（$/mt) |
Change |
|
Iron ore concentrate |
damp base (iron content: 66 percent) |
Tangshan |
747 |
-13 |
107 |
-2 |
|
Iron ore concentrate |
damp base (iron content: 66 percent) |
Beipiao |
701 |
-22 |
100 |
-3 |
Price Includes VAT.
$1 = RMB 7.0008