Iron ore prices start to rebound after previous slide, trading still weak

Import iron ore prices in China have edged up today, Thursday, February 9, for the second day in a row, after the previous weakening reported for most of the past week. The main supportive factors are rising futures prices and expectations for better demand from next week, though most market sources still believe that no big rises will be seen, at least in the near future.

Iron ore fines with 62 percent Fe content have moved up by $2.35/mt today to $124.8/mt CFR. This level is $0.5/mt below that seen a week ago. Brazilian iron ore with 65 percent Fe has indicated a rise of $2.7/mt on February 9 to $139.3/mt CFR, up $0.3/mt week on week, SteelOrbis has learned.

During the given week, import iron ore prices have fluctuated within a limited range. At the same time, iron ore futures prices have indicated rises since February 8, signaling improved sentiment as regards the future prospects for the steel market. Construction sites are expected to completely resume construction next week, which will bolster market sentiments. However, rainy weather may exert a negative impact on the demand for steel and negatively affect the iron ore prices. It is thought that import iron ore prices may continue their fluctuating trend in the coming week.

Iron ore futures prices at Dalian Commodity Exchange have moved up by 2.6 percent to RMB 863/mt ($127.1/mt) compared to February 2, while increasing by 2.62 percent compared to February 8.

As of Thursday, February 9, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,085/mt ($601.6/mt), rising by RMB 43/mt ($6.3/mt) or up 1.06 percent since February 2, while increasing by 1.57 percent compared to the previous trading day (February 8).

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 6.7905