Iron ore prices skyrocket by $6.7/mt today, up $19.1/mt from last week

Today, Thursday, December 10, iron ore prices have moved up sharply compared to yesterday, while also recording an unprecedented rise of $19.1/mt over the past week amid a surge in futures prices, which have hit a new record high, ongoing demand, and worries about lower supply.

Iron ore fines with 62 percent Fe content have surged by $6.7/mt today, to $156.5/mt CFR, while up by $19.1/mt week on week. Brazilian iron ore with 65 percent Fe has risen by $6.5/mt on the same day to $168/mt CFR, up by $19.5/mt week on week, SteelOrbis has learned.

Nine deals at both port and in the seaborne market for 232,300 mt of iron ore have been concluded on December 10, including 95,000 mt of 62.2 percent Fe content PB lump at the January 62 percent Fe index with shipment during January 2-11. Also, a cargo of 44,000 mt of 58.66 percent Fe blended fines was sold at a price of RMB 845/mt ($129/mt) at Caofeidian port.

Import iron ore prices have surged further in the given week amid the sharp rises seen in iron ore futures prices. Iron ore futures prices for iron ore with delivery in May at Dalian Commodity Exchange have edged up by 6.76 percent today, coming to RMB 971/mt ($148.2/mt), while increasing by 3.63 percent compared to December 3. The secondary main popular iron ore futures contract prices (i2102) rose by 6.78 percent today to RMB 1,016.5/mt ($155.2/mt), crossing the RMB 1,000/mt threshold for the first time in the history of Dalian Commodity Exchange.

Meanwhile, the inventory of iron ore on the Chinese steelmakers’ side has decreased, and, though steelmakers have been less willing to conclude purchases for iron ore, worries about lower supply from Brazil are adding to the bullish sentiment in the market.

Most market players think that the continuous big rises can hardly continue in the future due to the cold weather in winter negatively impacting demand for long steel. However, the speculation in iron ore futures prices may also affect prices in the spot market.

On Thursday, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,866/mt ($617/mt), increasing by RMB 174/mt ($26.6/mt) or 4.5 percent since December 3, while increasing by 2.38 percent compared to the previous trading day.

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 6.5476