Iron ore prices rise today amid improved expectations, down week on week

Import iron ore prices in China have moved up today, Thursday, September 22, amid better expectations with a rise of 3.24 percent in futures prices on the day. But spot prices are still below the last week’s level.

Iron ore fines with 62 percent Fe content have edged up by $1.85/mt today to $98.25/mt CFR. However, this level is $3.05/mt below that seen a week ago. Brazilian iron ore with 65 percent Fe has risen by $1.7/mt on September 22 to $110.8/mt CFR, down $3.75/mt week on week, SteelOrbis has learned.

On September 22, a deal for 170,000 mt of 62.0 percent PB fines has been done at the November 62 percent index + $0.8/mt, for shipment during October 28-November 6.

During the given week, import iron ore prices edged down first while moving up later, though still indicating decreases compared to last week. However, iron ore futures prices moved up by 3.24 percent on September 22, indicating that market players have started to hold a bullish view of the near-term prospects for the iron ore market. As the National Day holiday (October 1-7) is approaching, steelmakers may build up stocks of iron ore, which will bolster ore prices. It is expected that import iron ore prices will move up in the coming week.

Iron ore futures prices at Dalian Commodity Exchange have edged down by 0.6 percent to RMB 718/mt ($103/mt) compared to September 15, while increasing by 3.24 percent compared to September 21.

As of Thursday, September 22, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,765/mt ($539/mt), increasing by RMB 43/mt ($6.2/mt) or up 1.2 percent since September 15, while rising by 2.98 percent compared to the previous trading day (September 21).

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 6.9798