Iron ore retreats after rises earlier this week due to gloomy steel outlook

Thursday, 12 December 2019 17:09:46 (GMT+3)   |   Istanbul
       

Iron ore prices in China have edged down slightly today, Thursday, December 12, as demand is expected to slacken due to production restrictions and the gloomy outlook for the long steel sector. Prices for iron ore fines with 62 percent Fe content have lost $0.2/mt today to $93.8/mt CFR, but are still $5.2/mt higher compared to the end of last week. Brazilian iron ore with 65 percent Fe has also lost $0.8/mt over the day to $105.2/mt CFR, SteelOrbis has learned.

Chinese steelmakers’ capacity utilization rates have been at high levels, bolstering demand for iron ore in early December. However, demand for steel will slacken amid cold weather conditions, which will negatively affect iron ore prices in the near future.

Iron ore futures prices at Dalian Commodity Exchange have lost RMB 1.5/mt ($0.2/mt) or 0.22 percent today, coming to RMB 689.5/mt ($98.1/mt), but are still up 5.3 percent compared to December 5.

Steel enterprises in Tangshan in Hebei Province are required to implement level II anti-smog measures starting from 12:00 on December 13 due to the expected increase in smog, which will negatively affect steel output and thereby exert a negative impact on the iron ore market.

Rebar futures at Shanghai Future Exchange have increased by RMB 28/mt ($4.0/mt) or 0.75 percent on Thursday compared to the previous trading day, while increasing by RMB 164/mt ($23/mt) or 4.6 percent since December 5. However, the overall situation in the long steel market has been far from favorable. Average rebar spot prices have lost RMB 27/mt ($3.8/mt) today to RMB 4,013/mt ($571/mt) ew-warehouse, according to SteelOrbis’ data.    

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

Product Name

Port

Iron
Content

Place of origin

Truck loaded price
(RMB/mt)

Change
(RMB/mt)

Price
($/mt)

Change
($/mt)

Newman iron ore lump

Qingdao

63/63.5

Australia

821

-2

116.9

+0.2

Brazil fines

63

Brazil

692

+21

98.5

+3.4

Yandi fines

58 / 59

Australia

588

+7

83.7

+1.3

PB Fines

62

Australia

672

+7

95.7

+1.4

PB iron ore lump

62/63

Australia

816

-2

116.2

+0.2

Price include VAT.  

Nationwide iron ore concentrate prices

Product Name

Specification

Place of Origin

Market price (RMB/mt, Incl. VAT)

Change
(RMB/mt)

Price($/mt)

Change
($/mt)

Iron ore concentrate

damp base (iron content: 66 percent)

Tangshan

742

+9

106

+2

Iron ore concentrate

damp base (iron content: 66 percent)

Beipiao

655

0

93

0

Price include VAT. 

$1 = RMB 7.025


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