Iron ore slumps by almost $10/mt amid low demand and signs of further weakening

Today, Thursday, January 28, iron ore prices have edged down compared to yesterday by almost $10/mt and have also decreased compared to January 21, following the rising trend in the previous week. Lower raw material consumption and an expected further decline of demand due to maintenance works and the approach of the long holiday have impacted iron ore prices.

Iron ore fines with 62 percent Fe content have moved down by $9.9/mt compared to yesterday to $155.7/mt CFR, while declining by $14.3/mt week on week. Brazilian iron ore with 65 percent Fe has declined by $9.8/mt on the same day to $180.2/mt CFR, down by $14.3/mt week on week as well, SteelOrbis has learned.

Two deals for 50,000 mt iron ore have been concluded on January 28 for shipments from Chinese ports, including respectively 20,000 mt of 61.47 percent PB fines and 30,000 mt of 62.47 percent Newman fines, concluded at RMB 1,128/mt ($174.1/mt) and RMB 1,160/mt ($179/mt), at Tianjin port and Rizhao port. Also, at a trading platform 80,000 mt of Jimblebar fines from Australia have been sold at the March index - $1.05/mt.

During the given week, import iron ore prices have moved down as Chinese steel mills have been cautious in concluding purchases of iron ore and as steel prices have been under pressure. Steelmakers’ capacity utilization rates are expected to decrease amid the approach of the Chinese New Year holiday (February 11-17), which will weaken the demand for iron ore. At the same time, iron ore inventory at ports will increase, which will also exert a negative impact on prices.

The Chamber of Commerce for Metallurgical Enterprises in China has asked the government to curb speculation in iron ore prices, the high levels of which have affected producers’ profitability significantly.

Iron ore futures prices at Dalian Commodity Exchange have edged down by 4.98 percent today, coming to RMB 985.5/mt ($152.1/mt) compared to January 27, while decreasing by 7.1 percent compared to January 21.

On Thursday, January 28, rebar futures at the Shanghai Futures Exchange are standing at RMB 4,275/mt ($660/mt), decreasing by RMB 94/mt ($14.5/mt) or 2.15 percent since January 21, while declining by 1.7 percent compared to the previous trading day.

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 6.4845