Iron ore prices have increased after the Labor Day holiday (May 1-5), while transaction activity was at decent levels before the holiday, while the recent announcement of the Chinese government of a further economic stimulus is expected to support iron ore consumption in the near future. Iron ore fines with 62 percent Fe content have added $0.6/mt today, May 7, to $84.4/mt CFR, while Brazilian iron ore with 65 percent Fe has also increased by $0.4/mt to $103.2/mt CFR, SteelOrbis has learned.
A deal for 10,000 mt of 62.89 percent Fe lump ore and another deal for 10,000 mt of 61.17 percent Fe lump ore were respectively concluded at RMB 800/mt ($112.8/mt) and RMB 750/mt ($105.7/mt) on May 7 at Tianjin Port.
During the given week, most steelmakers built up stocks of iron ore ahead of the Labor Day holiday, which exerted a positive impact on iron ore prices. Steelmakers have been cautious after the holiday as there will be more iron ore arriving at Chinese ports amid better weather in Brazil and more shipments from Australia. However, overall demand for the raw material from the ports has remained healthy.
Iron ore futures prices at Dalian Commodity Exchange have edged up by 1.96 percent today, coming to RMB 623/mt ($87.8/mt) compared to May 6, while gaining 2.13 percent compared to April 30.
The Chinese government plans to keep supporting enterprises by tax cuts. Moreover, it is expected that another RMB 1 trillion of local government special bonds will be issued by the end of the month, according to the local press. This will further support infrastructure construction in the country and support steel demand.
On Thursday, May 7, rebar futures at Shanghai Future Exchange increased by RMB 72/mt ($10.2/mt) or 2.14 percent to RMB 3,439/mt ($485/mt) since April 30, while increasing by 1.51 percent compared to the previous trading day.
Imported iron ore prices in China (week-on-week basis)
|
Product name |
Iron |
Truck loaded price |
Change |
Price |
Change |
|
Newman iron ore lump |
63/63.5 |
800 |
-1 |
112.8 |
-0.7 |
|
Yandi fines |
58 / 59 |
570 |
5 |
80.4 |
0.3 |
|
PB Fines |
62 |
651 |
11 |
91.8 |
1.1 |
|
PB iron ore lump |
62/63 |
803 |
-7 |
113.2 |
-1.6 |
|
Brazil fines |
63 |
728 |
-1 |
102.6 |
-0.7 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
|
Place of origin |
Market price （RMB/mt, Incl. VAT) |
Change |
Price（$/mt) |
Change |
|
Tangshan |
715 |
4 |
101 |
0 |
|
Beipiao |
655 |
0 |
92 |
0 |
Price includes VAT.
$1 = RMB 7.0931