Import iron ore prices in China have seen decreases today, Thursday, August 8, and they have also posted a decline week on week. The ongoing weakness of demand and the anticipated acceleration of steel production cuts, especially in Tangshan, together with the continued decline in local steel prices have been behind the downward trend of ore prices.
Iron ore fines with 62 percent Fe content have indicated a decrease of $1.5/mt on August 8 to $98.7/mt CFR. This level is 3.45/mt below that seen on August 1. Brazilian iron ore with 65 percent Fe has decreased by $1.55/mt on August 8 to $114.25/mt CFR, while down $3.5/mt week on week, SteelOrbis has learned.
43 deals for a total of 681,300 mt of iron ore have been done at the Corex platform on August 8, signaling an improvement in demand after the price decline. In particular, one deal for 90,000 mt of 60.6 percent Mac fines was signed at $93.3/mt CFR for shipment during the month of September.
During the given week, import iron ore prices have edged down amid the increasing arrivals at ports. Finished steel prices have decreased, resulting in reduced demand for iron ore and weakening the support for ore prices. Molten iron production has already decreased a little and it is anticipated to decrease further over the next two weeks, which will negatively affect the demand for iron ore. “It is estimated that production cuts will increase in the coming weeks as more mills stopped from August 5, and even Tangshan is rumored to be implementing formal controls,” a trader said. It is thought that import iron ore prices in the Chinese market will see further corrections to low levels in the coming week.
Iron ore futures prices at Dalian Commodity Exchange have decreased by 3.63 percent today to RMB 729.5/mt ($102.3/mt) compared to the previous trading day, August 7, while decreasing by RMB 37.5/mt ($5.3/mt) compared to August 1.
As of August 8, rebar futures at Shanghai Futures Exchange are standing at RMB 3,254/mt ($456/mt), decreasing by RMB 101/mt ($3.6/mt) or 3.0 percent since August 1, while down 1.78 percent compared to the previous trading day, August 7.
Imported iron ore prices in China (week-on-week basis)
Product name |
Iron |
Truck loaded price |
Change |
Price |
Change |
Newman iron ore lump |
63/63.5 |
926 |
-26 |
129.6 |
-3.9 |
Yandi fines |
58 / 59 |
675 |
-14 |
94.5 |
-2.1 |
PB Fines |
62 |
765 |
-19 |
107.1 |
-2.9 |
PB iron ore lump |
62/63 |
941 |
-30 |
131.7 |
-4.5 |
Brazil fines |
63 |
804 |
-18 |
112.5 |
-2.7 |
Price includes VAT.
Nationwide iron ore concentrate prices (66 percent Fe)
Place of origin |
Market price （RMB/mt, Incl. VAT) |
Change |
Price（$/mt) |
Change |
Tangshan |
941 |
0 |
132 |
0 |
Beipiao |
876 |
6 |
123 |
1 |
Price includes VAT.
$1 = RMB 7.146