Iron ore prices rise today, but general mood remains weak

Import iron ore prices in China have moved up today, Thursday, April 14, amid higher futures prices, but have softened week on week due to still poor demand and due to the weak outlook due to the continuing Covid-19 outbreak in some areas.  

Iron ore fines with 62 percent Fe content have edged up today by $1.5/mt to $152.2/mt CFR. However, this level is $2.9/mt lower than that seen a week ago. Brazilian iron ore with 65 percent Fe has risen by $1.3/mt on April 14 to $177.6/mt CFR, down $3.7/mt week on week, SteelOrbis has learned.

On April 14, seventeen deals of 338,500 mt iron ore have been concluded at Corex, but only for trades from ports, including a contract for 59.68 percent Jimblebar blended fines at RMB 825/mt ($129.9/mt), at Qingdao port.

During the given week, the demand for iron ore has slackened due to the negative impact of the Covid-19 pandemic and strict control measures. At the same time, the iron ore volume arriving at ports has risen slightly, while still below the average annual level. Recently, Tangshan lifted its lockdown, which exerted a positive impact on inventory consumption of iron ore. Market players expect a better performance for the steel industry in the near future, which will likely boost the demand for iron ore. It is expected that import iron ore prices may fluctuate within a limited range in the coming week.

Iron ore futures prices at Dalian Commodity Exchange have edged up by 0.17 percent week on week to RMB 901.5/mt ($141.9/mt) compared to April 7, while rising by 0.11 percent compared to April 13.