Iron ore prices soften slightly but still above $120/mt CFR

Today, Thursday, August 13, iron ore prices have indicated slight declines compared to yesterday, but are still higher than a week earlier. Overall demand is firm.

Iron ore fines with 62 percent Fe content have edged down by $0.2/mt today, to $121.3/mt CFR, while Brazilian iron ore with 65 percent Fe has also moved down by $0.2/mt on the same day, to $128.3/mt CFR. Prices are up slightly by $0.5/mt compared to August 6, SteelOrbis has learned.

Deals for about 500,000 mt of iron ore have been concluded on August 13 on trading platforms, indicating still healthy demand. 170,000 mt of 61.5 percent Fe PB fines have been transacted at the September index +$3.6/mt, with shipment during September 22-October 1. The same volume of Brazilian blended fines with 62 percent Fe has been sold at $120.55/mt CFR. Two deals for Jimblebar fines (60.5 percent Fe) and for Mac fines (61 percent Fe) have been concluded at the August index -$4.6/mt and the September index +$2.45/mt, respectively.

During the given week, import iron ore prices in China have edged up slightly amid low iron ore stocks and the lack of increases in shipments from Australia and Brazil, partly due to congestion at Chinese ports. The China Iron and Steel Association (CISA) has stated that it has repeatedly reported to China’s Ministry of Transportation (MOT) on the increasing number of iron ore ships held up at Chinese ports due to weather conditions and the arrival of many ships at ports at the same time, resulting in iron ore supplies being held up and not being able to enter the market. The MOT said that it has noticed the problem and is trying its best to find a solution. According to officials, the problem can be resolved by the end of August.  

At the same time, Chinese steelmakers’ blast furnaces’ capacity utilization rates and steel outputs are at high levels, contributing to good demand for iron ore. However, following the previous quick rises in iron ore prices, market players have started to be more cautious on the market prospects, which may exert a negative impact on iron ore prices in the coming week. It is thought that import iron ore prices in China will likely fluctuate within a limited range in the coming week.  

Iron ore futures prices at Dalian Commodity Exchange have edged up by 0.85 percent today, coming to RMB 826.5/mt ($131.1/mt) compared to August 12, while decreasing by 9.2 percent compared to August 6, which was mainly due to the shift of the main contracts to contracts for shipment in January 2021.

On Thursday, rebar futures at the Shanghai Futures Exchange are standing at 3,791/mt ($545/mt), decreasing by RMB 67/mt ($9.7/mt) or 1.7 percent since August 6, while decreasing by 0.08 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 6.9429