Iron ore resumes downtrend as demand falls after rises since late last week

Import iron ore prices in China have moved up today, December 9, Thursday, compared to December 2, as prices have been supported since late last week by better steel demand and prices in China. But over the past two days, iron ore prices have resumed their declines, signaling weak sentiments in the market.

Iron ore fines with 62 percent Fe content have edged down by $2.1/mt compared to December 8, to $105.1/mt CFR. However, this level is $6.05/mt above that seen a week ago.

Brazilian iron ore with 65 percent Fe has moved down by $1.4/mt on December 9 to $121.3/mt CFR, but is still up $4.9/mt week on week, SteelOrbis has learned.

On December 9, four deals for a total of 120,000 mt of iron ore have been concluded at ports and trading platforms, with the biggest deal for 90,000 mt of 60.5 percent Fe content fines at the January index - $21.5/mt.

During the given week, import iron ore prices have edged up amid better demand from downstream users and the declining volume of iron ore arriving in the market. However, import iron ore prices have indicated a declining trend over the past few days due to shrinking demand. The delivery of iron ore in the global market may increase, which will exert a negative impact on prices. It is thought that import iron ore prices may edge down in the coming week.

Iron ore futures prices at Dalian Commodity Exchange have moved down by 3.17 percent today, coming to RMB 642.5/mt ($101.2/mt), while up by RMB 33.5/mt ($5.3/mt) or up 5.5 percent compared to December 2.

As of Thursday, December 9, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,293/mt ($676/mt), increasing by RMB 5/mt ($0.8/mt) or 0.12 percent since December 2, while decreasing by 2.96 percent compared to the previous trading day (December 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 6.3498