Iron ore prices edge up week on week, further movement awaited after May Day holiday

Import iron ore prices in China have indicated slight decreases today, Thursday, April 25, following big rises of $5.8/mt for 65 percent iron ore and $5.65/mt for 62 percent iron ore on April 24. In general, iron ore prices have indicated only a small increase on week-on-week basis, supported by futures prices and expectations.  

Iron ore fines with 62 percent Fe content have seen a decline of $0.25/mt on April 25 to $118.65/mt CFR. This level is $1.55/mt above that seen one week ago. Brazilian iron ore with 65 percent Fe has decreased by $0.4/mt on April 25 to $132/mt CFR, while up $1.85/mt week on week, SteelOrbis has learned.

Four deals for a total of 289,000 mt of iron ore were signed at the Corex platform on April 25. In particular, 170,000 mt of 61 percent PB fines were sold at $117/mt CFR for shipment during June 5-14, while 90,000 mt of 60.5 percent Jimblebar blended fines changed hands the June 62 percent index -$6.4/mt, for laycan during May 28-June 6. Also, 19,000 mt of 60.37 percent SP10 fines were traded at RMB 855/mt ($120.4/mt), for delivery at Caofeidian port.

Import iron ore prices in the spot market have fluctuated within a limited range in the given week. Steelmakers’ pig iron outputs have increased, bolstering the demand for import iron ore. At the same time, deliveries of import iron ore declined, exerting a positive impact on prices. However, Dalian Commodity Exchange announced that it is limiting the opening of futures position for futures contracts i2405 and i2409 to no more than 500 lots, with no more than 2,000 lots for other futures contracts, which signals that there is an expectation of suppression of iron ore prices in the short term against the backdrop of the recent big rises in iron ore futures prices.

It is thought that import iron ore prices may fluctuate in a limited range before the Chinese market closes for the Labor Day holiday.

Iron ore futures prices at Dalian Commodity Exchange have increased by 1.03 percent today to RMB 879.5/mt ($124/mt) compared to the previous trading day, April 24, while adding RMB 5.5/mt ($0.8/mt) compared to April 18.

As of April 25, rebar futures at Shanghai Futures Exchange are standing at RMB 3,669/mt ($517/mt), decreasing by RMB 13/mt ($1.8/mt) or 0.35 percent since April 18, while up 0.03 percent compared to the previous trading day, April 24.

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 7.1058