Iron ore strong this week, but weakens slightly in past two days as demand ebbs

Import iron ore prices in China have edged down slightly today, Thursday, April 29, following big rises earlier this week. The slowdown of demand ahead of the holiday on May 1-5 has prevented prices from recording further rises.

Iron ore fines with 62 percent Fe content have edged down by $0.2/mt compared to April 28, to $190.5/mt CFR. However, this level is $8/mt above that seen a week ago on April 22. Brazilian iron ore with 65 percent Fe has remained stable today at $226.2/mt CFR, up $8.2/mt week on week, SteelOrbis has learned.

On April 29, a deal for 80,000 mt of 60.5 percent Jimblebar blending fines was done at the June index -$2.2/mt, for delivery during the month of June. In addition, 170,000 mt of Pilbara fines have been traded at $189.5/mt CFR.

During the given week, import iron ore prices moved up amid increasing capacity utilization rates of blast furnaces and converters. Most steelmakers have built up stocks ahead of the Labor Day holiday (May 1-5), resulting in good demand for iron ore. Since the China Iron and Steel Association (CISA) urged the relevant government departments to take effective measures to ensure iron ore supply and curb its continuous rising trend, it is thought that import iron ore prices may fluctuate within a limited range in the near future.

Iron ore futures prices at Dalian Commodity Exchange have moved down by 0.84 percent today, coming to RMB 1126.5/mt ($174.1/mt) compared to April 28, while rising by RMB 35/mt ($5.4/mt) or 3.2 percent compared to April 22.

As of Thursday, April 29, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,452/mt ($843/mt), increasing by RMB 244/mt ($37.7/mt) or 4.7 percent since April 22, while increasing by 1.94 percent compared to the previous trading day (April 28).

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

Price includes VAT.  

Nationwide iron ore concentrate prices (66 percent Fe)

Price includes VAT.