Import iron ore prices in China have seen decreases today, Thursday, March 14, as futures have dropped by 2.62 percent on the same day, signaling the continuing bearishness of sentiments, while demand has remained weak and it is unlikely to improve in the near future.
Iron ore fines with 62 percent Fe content have decreased by $2.1/mt today to $104.2/mt CFR. This level is $14.25 /mt below that seen one week ago. Brazilian iron ore with 65 percent Fe has indicated a drop of $2.05/mt on March 14 to $116.9/mt CFR, while down $13.75/mt week on week, SteelOrbis has learned.
“It is a day of panic for Chinese steel and all negative factors are impacting prices. Then more production cuts are on the way from the southern provinces first,” a Chinese trader said.
Five deals of a total of 106,000 mt of import iron ore have been concluded on March 14 at the Corex platform, including 80,000 mt of 60.8 percent Fe Mac fines, transacted at $100.7/mt CFR, for shipment during April 1-10.
During the given week, import iron ore prices have decreased sharply amid sufficient supply and slack demand. Steel prices have moved down in the given period, reflecting the unusually poor demand in the local market in March. Due to negative margins, more steelmakers implemented maintenance works and have reduced their production outputs, which will have a negative impact on iron ore demand. Inventories of finished steel are at high levels, exerting a negative impact on prices and on demand for iron ore in the near future. It is expected that import iron ore prices may edge down further, though at a slower pace.
Iron ore futures prices at Dalian Commodity Exchange have declined by 2.62 percent today to RMB 798/mt ($112.4/mt) compared to the previous trading day, March 13, while decreasing by RMB 92/mt ($13/mt) compared to March 7.
As of March 14, rebar futures at Shanghai Futures Exchange are standing at RMB 3,506/mt ($494/mt), decreasing by RMB 199/mt ($28/mt) or 5.4 percent since March 7, while down 2.96 percent compared to the previous trading day, March 13.
Imported iron ore prices in China (week-on-week basis)
|
Product name |
Iron |
Truck loaded price |
Change |
Price |
Change |
|
Newman iron ore lump |
63/63.5 |
962 |
-76 |
135.6 |
-10.6 |
|
Yandi fines |
58 / 59 |
772 |
-80 |
108.8 |
-11.2 |
|
PB Fines |
62 |
815 |
-80 |
114.8 |
-11.2 |
|
PB iron ore lump |
62/63 |
974 |
-68 |
137.2 |
-9.5 |
|
Brazil fines |
63 |
845 |
-80 |
119.1 |
-11.2 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
|
Place of origin |
Market price （RMB/mt, Incl. VAT) |
Change |
Price（$/mt) |
Change |
|
Tangshan |
854 |
-119 |
120 |
-17 |
|
Beipiao |
836 |
-85 |
118 |
-12 |
Price includes VAT.
$1 = RMB 7.0974