Iron ore prices rise sharply amid mills’ expected production resumption, demand gradually up

Import iron ore prices in China have moved up sharply today, Thursday, July 28, while also seeing big rises compared to last week as sentiment, pushed up by higher futures prices, has been better and demand is expected to improve gradually beginning from August when producers will be purchasing raw materials for the autumn season. Iron ore futures prices rose by 7.16 percent on July 28 as market players sensed that steelmakers are expected to resume production in the near future.

Iron ore fines with 62 percent Fe content have moved up by $6.1/mt today to $117.7/mt CFR. This level is $22.3/mt above that seen a week ago, when prices were below the $100/mt CFR mark. Brazilian iron ore with 65 percent Fe has increased by $4.5/mt on July 21 to $126.4/mt CFR, up $17.4/mt week on week, SteelOrbis has learned.

On July 28, thirteen deals of 384,900 mt of iron ore were done at Corex platform. One deal for 170,000 mt of 61 percent Fe-content PB fines was signed at $118/mt CFR today, for shipment during August 29-September 7, which is $7.2/mt above a contract for the same grade signed yesterday. Another deal for 80,000 mt of 56.7 percent Fe-content Yandi fines was signed at the 62 percent index -$5.1/mt, for shipment during August 26-September 4. At GlobalOre, 90,000 mt of Jimblebar fines have been traded at the September index -$9.3.

During the given week, iron ore futures prices have moved up significantly amid the easing of concerns about foreclosures in the real estate market and the rapid consumption of rebar stocks. Following previous big declines in steelmakers’ outputs, they are expected to resume production in the near future, which has exerted a positive impact on iron ore demand expectations. Moreover, some gradual increase in demand has already been seen, given the increased number of deals today. It is thought that import iron ore prices in the Chinese market will likely edge up in the coming week.

Iron ore futures prices at Dalian Commodity Exchange have risen sharply by 7.16 percent today to RMB 793.5/mt ($117.7/mt), while increasing by 20.8 percent compared to July 21.

As of Thursday, July 28, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,058/mt ($602/mt), increasing by RMB 227/mt ($34/mt) or 5.9 percent since July 21, while rising by 4.45 percent compared to the previous trading day (July 27).

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 6.7411