Iron ore prices surge by over $10/mt after the holiday

Import iron ore prices for China have increased sharply by more than $10/mt compared to February 10, the last working day before the holiday. Buyers have returned to the market, where iron ore futures prices have also skyrocketed, while the trend has been bullish in the steel sector.  

Iron ore fines with 62 percent Fe content have moved up by $11.1/mt compared to February 10, to $174.5/mt CFR. Brazilian iron ore with 65 percent Fe has risen by $11/mt on the same day to $198/mt CFR, SteelOrbis has learned.

On February 18, a deal for 170,000 mt of 62 percent BRBF fines was concluded at $175.5/mt CFR for shipment during March 15-24. Also, 80,000 mt of Jimblebar fines from Australia have changed hands at the March index - $1.2/mt.

Chinese steelmakers have not been very active in replenishing stocks yet, following the long holiday. However, bullish sentiment prevails among market players, resulting in big rises in iron ore futures prices at Dalian Commodity Exchange (DCE). Iron ore futures prices at Dalian Commodity Exchange have moved up by 7.05 percent today, February 18, coming to RMB 1131.5/mt ($153.4/mt) compared to February 10, while rising by 14.2 percent compared to February 4.

“Our view is that the market will remain robust for some time,” Elizabeth Gaines, CEO of Fortescue Metals Group, told reporters.

The positive outlook is based on promising steel consumption in China and strong construction steel prices. On Thursday, February 18, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,529/mt ($703/mt), increasing by RMB 283/mt ($44/mt) or 6.67 percent since February 4, while rising by 3.26 percent compared to the previous trading day (February 10).

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 6.4391