Iron ore prices stay under pressure near $100/mt CFR mark with only small gains over week

Thursday, 25 August 2022 12:09:41 (GMT+3)   |   Shanghai
       

Import iron ore prices in China have edged down slightly today, Thursday, August 25, while posting just small increases over the week. Iron ore futures prices decreased by 0.21 percent on August 25, reflecting not very bright sentiments, but small changes on a weekly basis is signaling that iron ore cannot move either direction before any visible changes in the steel market.

Iron ore fines with 62 percent Fe content have moved down by $0.55/mt today to $101.35/mt CFR. This level is $0.8/mt above that seen a week ago. Brazilian iron ore with 65 percent Fe has declined by $0.5/mt on August 25 to $113.2/mt CFR, up $1.4/mt week on week, SteelOrbis has learned.

On August 18, purchasing activity was relatively healthy at ports. Moreover, two deals for Newsman fines with 62-62.3 percent Fe, 80,000-90,000 mt each have been done at $101/mt CFR both today.

During the given week, capacity utilization rates of blast furnaces in China increased as production of rebar and wire rod increased, thereby steelmakers have been willing to build up stock for iron ore. However, market players have been bearish towards the prospect for the future market, which exerted a negative impact on the iron ore market. At the same time, the inventory level increased, weakening the support to iron ore prices. It is expected that import iron ore prices will likely continue to fluctuate in the limited range in the coming week.

Iron ore futures prices at Dalian Commodity Exchange have edged up by 4.0 percent to RMB 705.5/mt ($103/mt) compared to August 18, while decreasing by 0.21 percent compared to August 24.

As of Thursday, August 25, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,052/mt ($591.5/mt), increasing by RMB 11/mt ($1.6/mt) or 0.27 percent since August 18, while decreasing by 0.3 percent compared to the previous trading day (August 24).

Imported iron ore prices in China (week-on-week basis)

Product name

Iron
Content

Truck loaded price
(RMB/mt)

Change
(RMB/mt)

Price
($/mt)

Change
($/mt)

Newman iron ore lump

63/63.5

887

31

129.4

3.2

Yandi fines

58 / 59

723

16

105.5

1.2

PB Fines

62

753

16

109.9

1.2

PB iron ore lump

62/63

892

31

130.1

3.2

Brazil fines

63

793

16

115.7

1.1

Price includes VAT.

Nationwide iron ore concentrate prices (66 percent Fe)

Place of origin

Market price RMB/mt, Incl. VAT)

Change
(RMB/mt)

Price$/mt)

Change
($/mt)

Tangshan

836

-22

122

-5

Beipiao

757

-51

110

-9

Price includes VAT.

$1 = RMB 6.8536


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