Iron ore retreats as replenishment activity eases, futures down

Iron ore prices for China have edged down today Thursday, January 9, compared to yesterday, though they are still $0.4/mt higher compared to January 2. Iron ore fines with 62 percent Fe content have lost $1.6/mt today to $93.5/mt CFR, while Brazilian iron ore with 65 percent Fe has lost $1.8/mt to $105.9/mt CFR, SteelOrbis has learned.

A deal for a mixed cargo of Pilbara fines and lumps totaling 170,000 mt has been done at COREX for shipment during January 15-31. The price for fines has been based on the February index plus $1/mt, while PB lump has been traded without extras.

During the given week, Chinese steelmakers replenished stocks of iron ore, exerting a positive impact on the iron ore market. Today, trading activity at platforms and at Chinese ports has somewhat slackened. Moreover, prices had risen to a three-month high on Wednesday, so some rollback is natural, sources said.

Iron ore futures prices at Dalian Commodity Exchange have lost RMB 20/mt ($2.9/mt) or 2.95 percent today, coming to RMB 657/mt ($94.5/mt), reflecting the weakening of sentiments.

Nevertheless, traders are still positive for the future iron ore market as they think steelmakers will build up more stocks as there are still some trading days left ahead of the Chinese New Year holiday. Moreover, due to bad weather in Australia and Brazil, shipment times will be negatively affected, which will prevent iron ore prices from recording any visible decline in the near future.

Rebar futures at Shanghai Future Exchange have lost RMB 47/mt ($6.8/mt) or 1.3 percent on Thursday compared to the previous trading day, while increasing by RMB 8/mt ($1.2/mt) or 0.2 percent since January 2.

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 6.95