Iron ore prices down from last week, but only slightly

Import iron ore prices in China have decreased over the past week, but in general the price level has remained above $135/mt CFR, remaining among the highest levels seen this year. The worsening mood in the Chinese market due to the weaker-than-anticipated stimulus measures and the colder weather which will impact steel demand is impacting iron ore, thought the raw material is still supported by the relatively balanced supply-demand situation and the lack of high inventories.  

Iron ore fines with 62 percent Fe content have decreased by $0.45/mt today, December 14, to $135.25/mt CFR. This level is $0.9/mt below that seen one week ago. Brazilian iron ore with 65 percent Fe has indicated a decline of $0.55/mt on December 14 to $146.45/mt CFR, while down $1.8/mt week on week, SteelOrbis has learned.  

Eight deals for a total of 152,700 mt have been concluded at Corex today, including 80,000 mt of 62.7 percent Newman blended lump at the January 62 percent index +$0.17/mt, for shipment during January 11-20.  

During the given week, import iron ore prices fluctuated within a limited range amid the relatively balanced situation between supply and demand in the market. Supply has indicated slight declines compared to the previous week, while maintenance works on blast furnaces have resulted in the slackening of demand for iron ore. Inventory of iron ore has increased, exerted a negative impact on prices. Market players have started to focus on the possibility of further stimulus measures as the National People's Congress and the Chinese People's Political Consultative Conference (NPC & CPPCC) are approaching. On December 14, two first-tier cities in China, Beijing and Shanghai, announced cuts in the downpayment rate to 50 percent and to 40 percent in several suburban districts for second-house purchases, aiming to stimulate the real estate industry. However, extremely cold weather is going to hit most areas of China, which likely affect the demand for iron ore in the short term. It is thought that import iron ore prices may continue their fluctuating trend in the coming week.   

Iron ore futures prices at Dalian Commodity Exchange have decreased by RMB 10/mt ($5.1/mt) or 1.05 percent to RMB 942/mt ($133/mt) compared to the previous trading day (December 13), while decreasing by RMB 10/mt compared to December 7.   

As of Thursday, December 14, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,925/mt ($565/mt), decreasing by RMB 86/mt ($12.1/mt) or down 2.1 percent since December 7, while declining by 1.63 percent compared to the previous trading day (December 13).  

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 7.109