Import iron ore prices in China have seen declines today, Thursday, November 23, following lower futures prices amid news of government intervention. However, the price is still above the level seen last week.
Iron ore fines with 62 percent Fe content have declined by $1.6/mt today to $134.2/mt CFR. This level is $1.85/mt above that seen one week ago. Brazilian iron ore with 65 percent Fe has indicated a drop of $1.45/mt on November 23 to $146.3/mt CFR, while up $3.4/mt week on week, SteelOrbis has learned.
Ten deals for a total of 105,200 mt have been concluded at Corex today, with overall trading activity posting a slowdown.
Import iron ore prices have indicated rises amid increasing futures prices this week, though which declining by 0.86 percent on November 23 as relevant government departments urging market players to pay attention to the continuous rises in iron ore prices. In particular, the National Development and Reform Commission (NDRC) announced its intention to curb the recent uptrend in the iron ore market by meeting with trading companies involved in spot and futures trading of iron ore.
Iron ore futures hit a nine-month high yesterday despite the slow season for steel demand in China.
Delivery of import iron ore has declined over the past two weeks. Meanwhile, inventory of iron ore has been at relatively low levels, bolstering prices to a certain degree.
On November 23, one of China’s first-tier cities, Shenzhen, announced the reduction of the downpayment ratio for second-house purchases, which will likely exert a positive impact on the real estate market, and this will provide support for demand for rebar and wire rod used in construction activities. At the same time, coke prices have seen another rise, of RMB 110/mt, on November 20, affecting iron ore prices.
However, the weather in China is getting colder, which may slacken the demand for iron ore due to the slowdown in construction activities. It is expected that import iron ore prices may fluctuate within a limited range in the coming week.
Iron ore futures prices at Dalian Commodity Exchange have risen by RMB 11.5/mt ($1.6/mt) to RMB 976.5/mt ($137.1/mt) compared to November 16, while decreasing by 0.86 percent compared to the previous trading day (November 22).
As of Thursday, November 23, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,934/mt ($554/mt), decreasing by RMB 38/mt ($5.3/mt) or down 0.96 percent since November 16, while decreasing by 1.3 percent compared to the previous trading day (November 22).
Imported iron ore prices in China (week-on-week basis)
|
Product name |
Iron |
Truck loaded price |
Change |
Price |
Change |
|
Newman iron ore lump |
63/63.5 |
1,164 |
25 |
163.5 |
4.6 |
|
Yandi fines |
58 / 59 |
952 |
15 |
133.7 |
3.0 |
|
PB Fines |
62 |
1,000 |
25 |
140.4 |
4.5 |
|
PB iron ore lump |
62/63 |
1,168 |
15 |
164.0 |
3.3 |
|
Brazil fines |
63 |
1,019 |
34 |
143.1 |
5.8 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
|
Place of origin |
Market price （RMB/mt, Incl. VAT) |
Change |
Price（$/mt) |
Change |
|
Tangshan |
1,052 |
17 |
148 |
3 |
|
Beipiao |
1,017 |
28 |
143 |
5 |
Price includes VAT.
$1 = RMB 7.1212