Slack demand pushes iron ore prices down further

Iron ore prices have moved down further on October 17 due to slack demand, weak sentiments and lower futures. Buyers have been reluctant to make purchases in the overseas market and have focused on bookings from ports for current needs. Prices for 62 percent Fe iron ore fines have lost $0.5/mt to $86.5/mt CFR. Brazilian fines with 65 percent Fe content have inched down by $0.3/mt to $93.5/mt CFR.

There have been no deals fixed at the trading platforms over the day and contracts have been mostly signed for material at ports. Prices for Pilbara fines have lost RMB 40/mt ($5.7/mt) week on week and have come to RMB 692/mt ($97.8/mt) on Thursday.

Iron ore futures at Dalian Commodity Exchange have lost RMB 14/mt ($2/mt) to RMB 615/mt ($86.9/mt) on October 17 compared to that on October 16, though seeing a decline of 6.5 percent compared to that on October 10. “Sentiments are weak as demand outlook for coming months is bad,” a trader said.

Inventory level of rebar has shown a declining trend, which provided certain support for rebar prices. On October 17, rebar futures at the Shanghai Future Exchange have risen by RMB 1/mt ($0.14/mt) to RMB 3,324/mt ($469.5/mt) compared to October 16, following a day-on-day decline of 1.44 percent recorded on October 16.

Imported Iron Ore Prices (on weekly basis)

Note：The Price Includes VAT  

Nationwide iron ore concentrate prices

Note：The Price Includes VAT