Iron ore prices slide to $100/mt CFR due to fall in futures prices, rise in inventories

Import iron ore prices in China have moved down slightly today, Thursday, August 18, and have lost almost $10/mt week on week due to the weakness in the steel market, slow demand and the fall in futures prices.

Iron ore fines with 62 percent Fe content have moved down by $0.25/mt today to $100.55/mt CFR. This level is $9.65/mt below that seen a week ago. Brazilian iron ore with 65 percent Fe has declined by $0.1/mt on August 18 to $111.8/mt CFR, down $8.3/mt week on week, SteelOrbis has learned.

On August 18, six deals of 32,300 mt of iron ore were done at ports, while no large deals were done at platforms for seaborne ore.

During the given week, import iron ore prices edged down amid decreasing futures prices. Iron ore volumes at ports have increased for seven consecutive weeks, but may decline in the coming week as deliveries of iron ore from Australia and Brazil will decrease. Though steelmakers are expected to record higher capacity utilization rates in the near future, the relatively high inventory levels will weaken the support for iron ore prices. It is expected that import iron ore prices will likely continue their fluctuating trend in the coming week, following the situation in the steel market.

Iron ore futures prices at Dalian Commodity Exchange have sharply decreased by 3.96 percent today to RMB 678.5/mt ($100/mt), while decreasing by 8.4 percent compared to August 11.

As of Thursday, August 18, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,041/mt ($596/mt), decreasing by RMB 67/mt ($9.9/mt) or 1.6 percent since August 11, while decreasing by 1.13 percent compared to the previous trading day (August 17).

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 6.7802