Iron ore prices fluctuate at high level at end of year, demand eases

Import iron ore prices in China have indicated declines today, Thursday, December 28, after iron ore futures prices decreased by 1.33 percent on the same day. Slower demand due to lower steel production rates in northern China has prevented prices from recording further rises. However, in general prices this week have been above last week’s levels, still indicating a positive outlook for January, when some stock replenishment is awaited.  

Iron ore fines with 62 percent Fe content have decreased by $1.8/mt today to $140.05/mt CFR. This level is $2/mt above that seen one week ago. Brazilian iron ore with 65 percent Fe has indicated a decrease of $1.85/mt on December 28 to $150.4/mt CFR, while up $1.65/mt week on week, SteelOrbis has learned.  

Two deals for a total of 40,000 mt have been concluded at Corex, reflecting the slowdown of demand. About 30,000 mt of 60.96 percent of Jimblebar blended fines were transacted at RMB 1,016/mt ($143.1/mt), for delivery to Tianjin port, and 10,000 mt of 61.87 percent of PB fines were bought at RMB 1,030/mt ($145.1/mt), for delivery to Dongjiakou port.   

During the given week, import iron ore prices have moved up amid the anticipated interest rate cuts and low inventory levels of iron ore at ports. Recently, the shipments of iron ore have increased. At the same time, more blast furnaces have halted production for maintenance works due to the heavy pollution in northern China. Inventory of iron ore at ports is expected to increase in the near future. It is thought that import iron ore prices may edge down in the coming week. However, later in January prices may fluctuate at above $140/mt CFR on the back of restocking.  

Iron ore futures prices at Dalian Commodity Exchange have decreased by 1.33 percent to RMB 966/mt ($136/mt) compared to the previous trading day (December 27), while decreasing by RMB 2/mt compared to December 21.   

As of Thursday, December 28, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,996/mt ($563/mt), increasing by RMB 8/mt ($1.1/mt) or up 0.2 percent since December 21, while decreasing by 0.42 percent compared to the previous trading day (December 27).  

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 7.0974