Iron ore sales more active after latest sharp price drop, bearishness still observed

Import iron ore prices in China have increased slightly today, Thursday, May 25, after indicating a big decline compared to the previous week. Sales have improved, supporting prices a little, but the overall mood has remained bearish amid still declining futures prices. 

Iron ore fines with 62 percent Fe content have moved up by $0.4/mt today to $97.4/mt CFR. This level is $12.35/mt below that seen a week ago. Brazilian iron ore with 65 percent Fe has been stable today at $111.75/mt CFR, while down $13.15/mt week on week, SteelOrbis has learned. 

On May 25, three deals for 265,000 mt of iron ore have been concluded at the Corex platform. In particular, 170,000 mt of 62 percent Fe content BRBF fines have been transacted at the July low-alumina 62 percent iron ore index +$3.0/mt, with laycan during June 29 to July 8. In addition, 90,000 mt of 60.8 percent Fe content Mac fines have been traded at $91.85/mt CFR for shipment during June 24-July 3.  

During the given week, import iron ore prices have moved down further amid steelmakers’ lack of willingness to conclude purchases. Currently, steelmakers have chosen to maintain low inventory levels of iron ore, aiming to avoid potential risks. Demand for finished steel has been sluggish, while this situation may worsen in the near future when the traditional offseason begins. As for the coming week, steelmakers’ capacity utilization rates will see slight rises due to the finishing of some repairs at mills, which might provide limited support for iron ore prices as bearish sentiments will continue to prevail among market players. It is expected that import iron ore prices in the Chinese market likely edge down in the coming week.  

Iron ore futures prices at Dalian Commodity Exchange have moved down by 8.8percent to RMB 681/mt ($96.6/mt)compared to May 18, while decreasing by2.23 percent compared to the previous trading day (May 24).  

As of Thursday, May 25, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,432/mt ($487/mt),decreasing by RMB 255/mt ($36.2/mt) or down 6.92 percent since May 18, while declining by 2.53 percent compared to the previous trading day (May 24). 

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 7.0529