Iron ore prices continue to rise ahead of holiday

Thursday, 25 January 2024 17:03:19 (GMT+3)   |   Istanbul
       

Import iron ore prices in China have seen further increases today, Thursday, January 25, supported by the 1.6 percent rise in futures prices on the same day.

Iron ore fines with 62 percent Fe content have increased by $0.65/mt today to $136.65/mt CFR. This level is $6.05/mt above that seen one week ago. Brazilian iron ore with 65 percent Fe has indicated a rise of $0.7/mt on January 25 to $148.95/mt CFR, while up $6.7/mt week on week, SteelOrbis has learned.

Ten deals for a total of 501,200 mt of import iron ore have been concluded on January 25 at the Corex platform, including 170,000 mt of 62 percent PB fines transacted at the March 62 percent index + $2.7/mt, for shipment during March 4-13, 170,000 mt of 62 percent BRBF fines at $136.45/mt CFR for shipment during March 10-19, 80,000 mt of 60.8 percent Mac fines at $132.7/mt CFR (shipment during February 25-March 5) and 15,000 mt of 61.15 percent PB fines transacted at RMB 1,037/mt ($146/mt), for delivery to Tianjin port.

Import iron ore prices have indicated a rebounding trend against the backdrop of steelmakers’ profitability hitting a new record low in the same period. Steelmakers have been unwilling to build up stocks at the current relatively high prices. However, the People’s Bank of China has officially announced a cut of 0.5 percentage points in the reserve requirement ratio (RRR) effective from February 5, bolstering market sentiments and pushing up import iron ore prices. Though demand from steelmakers for iron ore may slacken, market players think some buyers may conclude purchases for import iron ore in the remaining few trading days ahead of the Chinese New Year holiday (February 9-16). It is expected that import iron ore prices in the Chinese domestic market will edge up in the coming week.

Iron ore futures prices at Dalian Commodity Exchange have risen by 1.6 percent, standing at RMB 987/mt ($139/mt) compared to the previous trading day (January 24), while increasing by RMB 38.5/mt ($5.4/mt) compared to January 18.

As of Thursday, January 25, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,967/mt ($559/mt), increasing by RMB 54/mt ($7.6/mt) or up 1.4 percent since January 18, while rising by 0.69 percent compared to the previous trading day (January 24).

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 

1,155 

26 

162.6  

4.0  

Yandi fines 

58 / 59 

970 

34 

136.5  

5.0  

PB Fines 

62 

1,036 

44 

145.8  

6.4  

PB iron ore lump 

62/63 

1,160 

25 

163.3  

3.8  

Brazil fines 

63 

1,072 

40 

150.9  

5.9  

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 

1,086 

27 

153  

4  

Beipiao 

983 

-11 

138  

-1  

Price includes VAT.  

$1 = RMB 7.1044


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