Import iron ore prices in China have continued to move down on Thursday, September 2, Thursday, while they are also down week on week as demand has been poor. Most customers have been cautious as regards purchases of large-volume cargoes, seeing a weak steel market outlook, even though the sentiment in the steel market has improved a bit.
Iron ore fines with 62 percent Fe content have declined again - by $3.35/mt today compared to September 1, to $139.2/mt CFR. This level is $11.65/mt below that seen a week ago on August 26. Brazilian iron ore with 65 percent Fe has moved down by $3.1/mt on September 2 compared to the previous trading day, to $159.1/mt CFR, down $8.8/mt week on week, SteelOrbis has learned.
On September 2, demand for large import cargoes has remained very poor and no deals at trading platforms have been reported for the second day in a row. However, two deals for 41,000 mt of iron ore have been concluded at COREX today for purchases from Chinese ports today. The biggest deal was for 20,000 mt of 61.38 percent PB fines at RMB 1,025/mt ($159/mt), delivered at Qingdao port.
During the given week, both capacity utilization rates and outputs of blast furnaces in China have decreased, adding to the negative sentiments. Since China aims to reduce steel output and emissions, the production restrictions will continue and so steelmakers have preferred to keep low levels of inventories of iron ore. Traders have been willing to bolster their offer prices for import iron ore as they expect better demand for finished steel in September, but some increase has been accepted only for purchases from ports, where demand has been better and risks have been lower.
Iron ore futures prices at Dalian Commodity Exchange (main contract i2201) have moved down by 0.58 percent today, coming to RMB 773.5/mt ($120/mt), while decreasing by RMB 42.5/mt ($6.6/mt) or 5.21 percent compared to August 26.
As of Thursday, September 2, rebar futures at the Shanghai Futures Exchange are standing at RMB 5,273/mt ($816.3/mt), rising by RMB 165/mt ($25.5/mt) or 3.23 percent since August 26, while increasing by 0.21 percent compared to the previous trading day (September 1).
Imported iron ore prices in China (week-on-week basis)
|
Product name |
Iron |
Truck loaded price |
Change |
Price |
Change |
|
Newman iron ore lump |
63/63.5 |
1,280 |
-45 |
198.2 |
-6.5 |
|
Yandi fines |
58 / 59 |
923 |
-2 |
142.9 |
0.0 |
|
PB Fines |
62 |
1,017 |
-13 |
157.5 |
-1.7 |
|
PB iron ore lump |
62/63 |
1,280 |
-45 |
198.2 |
-6.5 |
|
Brazil fines |
63 |
1,143 |
-12 |
177.0 |
-1.5 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
|
Place of origin |
Market price （RMB/mt, Incl. VAT) |
Change |
Price（$/mt) |
Change |
|
Tangshan |
1,179 |
35 |
183 |
6 |
|
Beipiao |
1,096 |
45 |
170 |
7 |
Price includes VAT.
$1 = RMB 6.4594