Iron ore prices soften from high pre-holiday level but remain above $100/mt CFR

Import iron ore prices in China have seen slight decreases today, Thursday, October 10, and are down nearly $5/mt from September 30, as the expectations seen before the holidays have failed to materialize so far. Nevertheless, even though overall demand has not been so strong, some restocking and higher steel prices have resulted in iron ore prices remaining above $100/mt CFR.

Iron ore fines with 62 percent Fe content have indicated a drop of $0.2/mt on October 10 to $103.2/mt CFR. This level is $5.15/mt below that seen on September 30, the last day before the holiday. Brazilian iron ore with 65 percent Fe has decreased by $0.05/mt on October 10 to $117.35/mt CFR, while down $3.95/mt from last Monday, SteelOrbis has learned.

11 deals for a total of 215,100 mt of iron ore have been transacted at the Corex platform on October 10. In particular, 90,000 mt of 60.5 percent Jimblebar blended fines have been sold at the November 62 percent index - $7.4/mt, for shipment during November 11-20.

Import iron ore prices in the Chinese domestic market moved up first since late September amid the decreasing inventory levels at ports. Meanwhile, downstream users replenished stocks ahead of the long National Day holiday, bolstering iron ore prices firmly. Moreover, finished steel prices also rose amid improved market sentiments, exerting a positive impact on iron ore prices.

However, following rapid rises, steel prices started to indicate a downward correction, weakening the support for iron ore prices. Market players still mostly hold an optimistic view as regards the future prospects for the steel market, which will positively affect iron ore prices. It is expected that import iron ore prices will edge up slightly in the coming week.

Iron ore futures prices at Dalian Commodity Exchange have decreased by 1.02 percent today to RMB 775.5/mt ($109.7/mt) compared to the previous trading day, October 9, while increasing by RMB 47.5/mt ($6.7/mt) compared to September 26.

As of October 10, rebar futures at Shanghai Futures Exchange are standing at RMB 3,442/mt ($487/mt), increasing by RMB 161/mt ($23/mt) or 4.9 percent since September 26, while down 1.66 percent compared to the previous trading day, October 9.

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 7.0742