Iron ore prices in China have moved down over the past week as softer demand, no intention of further restocking by mills, and high port stocks have finally overcome expectations.
Today, February 5, the prices for ex-Australia iron ore fines with 62 percent Fe content stand at $102.75/mt CFR, dropping by $1.85/mt from the previous day and by $3.95/mt over the past week. At the same time, fines with 65 percent Fe content are at $116.2/mt CFR, down by $1.7/mt from yesterday and by $3.8/mt from last week.
35 deals totaling 848,100 mt of iron ore have been signed at the Corex platform on February 5. In particular, 30,000 mt of 56.532 percent Fe fines were transacted at RMB 655/mt ($94.1/mt), for delivery at Lianyungang port, while 18,000 mt of 64.56 percent Fe Carajas fines were sold at RMB 880/mt ($126.4/mt), for delivery at Tianjin port.
On February 5, Corex’s Iron Ore Portside Index (61% Fe Qingdao) and Iron Ore Portside Index (61% Fe Caofeidian) were at RMB 771/wmt and RMB 782/wmt, with the USD/dmt equivalents standing at $103.53 and $104.7.
Import iron ore prices have moved down amid decreasing iron ore futures prices and demand. Production of crude steel has decreased in the given week. At the same time, the plunge in commodity prices negatively affected market sentiments. The inventory of iron ore at ports has increased in the past week, exerting a negative impact on prices. The demand for iron ore will remain slack in the coming period as the Chinese New Year holiday (February 14-23) is approaching. It is expected that import iron ore prices in the Chinese market will soften further in the coming week.
Iron ore futures prices at Dalian Commodity Exchange have declined by 1.73 percent today to RMB 768.5/mt ($110.4/mt) compared to the previous trading day, February 4, while decreasing by 3.76 percent compared to January 29.
As of February 5, rebar futures at Shanghai Futures Exchange are standing at RMB 3,101/mt ($445.5/mt), decreasing by RMB 56/mt ($8.0/mt) or 1.8 percent since January 29, while down 0.29 percent compared to the previous trading day, February 4.
Imported iron ore prices in China (week-on-week basis)
| Product name | Iron Content |
Truck loaded price (RMB/mt) |
Change (RMB/mt) |
Price ($/mt) |
Change ($/mt) |
| Newman iron ore lump | 63/63.5 | 840 | -28 | 120.7 | -3.7 |
| Yandi fines | 58 / 59 | 761 | -22 | 109.4 | -2.8 |
| PB Fines | 62 | 775 | -22 | 111.4 | -2.8 |
| PB iron ore lump | 62/63 | 841 | -26 | 120.9 | -3.4 |
| Brazil fines | 63 | 804 | -17 | 115.6 | -2.1 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
| Place of origin | Market price （RMB/mt, Incl. VAT) | Change (RMB/mt) |
Price（$/mt) | Change ($/mt) |
| Tangshan | 872 | -6 | 125 | -1 |
| Beipiao | 853 | 0 | 123 | 0 |
Price includes VAT.
$1 = RMB 6.957