Iron ore up as China’s holiday starts tomorrow, FMG stops mine’s operations

Import iron ore prices in China have moved up on Thursday, September 30, compared to the previous day and to one week earlier as mills have been completing their restocking ahead of the long holiday which will start on October 1. In addition, today one of the major Australian iron ore producers, FMG, has been forced to halt operations at its main mine due to an accident.  

Iron ore fines with 62 percent Fe content have edged up by $2.6/mt compared to September 29, to $116.1/mt CFR. This level is $8.3/mt above that seen a week ago on September 23. Brazilian iron ore with 65 percent Fe has moved up by $2.7/mt on September 30 to $140.7/mt CFR, up $7.2/mt week on week, SteelOrbis has learned.

On September 30, three deals were concluded at COREX, with the largest deal for 170,000 mt of 62.0 percent BRBF fines done at the November index + $2.1/mt, with the shipment period during November 2-11.

During the given week, import iron ore prices in China have mostly moved up amid restocking ahead of the National Day holiday (October 1-7), while steel production restrictions have remained in place in many areas in the north and east of China. The iron ore arrivals at Chinese ports have decreased slightly.

In addition, the daily price increase in the iron ore market has been linked to the possible slowdown of supply. Australian miner FMG has stopped operations at its Solomon mine with a capacity of 75 million mt of iron ore per year today after an accident which resulted in a fatality. “The incident occurred when there was a collapse of ground and Fortescue is working closely with all relevant authorities. Mining operations at Solomon remain temporarily suspended,” the company stated.

Iron ore futures prices at Dalian Commodity Exchange (main contract i2201) have moved up by 5.41 percent today, coming to RMB 721.5/mt ($111.2/mt), while rising by RMB 54.5/mt ($8.4/mt) or 8.17 percent compared to September 23. It is thought that import iron ore may indicate a rebounding trend after the long holiday.

As of Thursday, September 30, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,706/mt ($880/mt), increasing by RMB 101/mt ($9.9/mt) or 1.8 percent since September 23, while increasing by 1.15 percent compared to the previous trading day (September 29).

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 6.4854