Iron ore prices continue to rise, heading towards $120/mt CFR

Import iron ore prices in China have indicated further increases today, Thursday, April 18, following a iron ore futures price rise by 3.07 percent on the same day, resulting in a strong week-on-week rise of almost $10/mt. Further increases and exceeding the $120/mt CFR mark are not excluded next week.

Iron ore fines with 62 percent Fe content have seen a rise of $1.05/mt on April 18 to $117.1/mt CFR. This level is $8.6 /mt above that seen one week ago. Brazilian iron ore with 65 percent Fe has risen by $1.15/mt on April 18 to $130.15/mt CFR, while up $10.2/mt week on week, SteelOrbis has learned.

Five deals for a total of 230,000 mt of iron ore have been transacted on April 18 at Corex. In particular, 100,000 mt of 62.3 percent Newman fines were sold at $115.6/mt CFR, for shipment during May 21-30, 90,000 mt of 60.5 percent Jimblebar blended fines were sold at the May 62 percent index -$6.45/mt, with laycan during May 21-30, and 20,000 mt of 61.5 percent fines changed hands at RMB 895/mt ($126/mt), for delivery at Caofeidian port. 

Import iron ore prices have continued their uptrend, with the rising pace stronger than that for finished steel. Some blast furnace maintenance works have been completed in the past week, exerting a positive impact on the demand for iron ore, bolstering prices. Currently, steelmakers have been more willing to build up stocks, especially ahead of the May Day holiday. At the same time, sentiments have improved among market players, increasing speculative demand from traders, resulting in increasing transaction activities. The delivery of import iron ore will likely decrease amid the negative impact of typhoon weather in Australia. It is thought that import iron ore prices in the Chinese market will edge up in the coming week.

Iron ore futures prices at Dalian Commodity Exchange have increased by 3.07 percent today to RMB 874/mt ($123/mt) compared to the previous trading day, April 17, while increasing by RMB 48/mt ($6.8/mt) compared to April 11.

As of April 18, rebar futures at Shanghai Futures Exchange are standing at RMB 3,682/mt ($509/mt), increasing by RMB 69/mt ($9.7/mt) or 1.9 percent since April 11, while up 1.18 percent compared to the previous trading day, April 17.

Imported iron ore prices in China (week-on-week basis)

Price includes VAT.

Nationwide iron ore concentrate prices (66 percent Fe)

Price includes VAT. 

$1 = RMB 7.1025