Iron ore rebounds to above $100/mt CFR, but demand far from good

Import iron ore prices in China have indicated rises today, Thursday, August 29, and on a weekly basis, following increase in steel prices locally and some better expectations for September, though overall iron ore consumption and market fundamentals have failed to improve.

Iron ore fines with 62 percent Fe content have indicated an increase of $0.85/mt on August 29 to $101.1/mt CFR. This level is $4.6/mt above that seen on August 22. Brazilian iron ore with 65 percent Fe has increased by $0.75/mt on August 29 to $114.95/mt CFR, while up $4.05/mt week on week, SteelOrbis has learned.

33 deals of 539,100 mt iron ore have been signed at Corex platform on August 29. In particular, one deal of 170,000 mt 61 percent PB fines being dealt at $100.7/mt CFR for shipment during October 2-11, and 80,000 mt of 60.6 percent Mac fines have been traded $94.6/mt CFR for shipment during the whole month of October. 

During the given week, import iron ore prices in the Chinese market have indicated a rebounding trend amid the decreasing deliveries and less iron ore tonnages arriving at ports. Blast furnaces under maintenances have been more than those in production, reducing the output of molten iron and weakening the demand for iron ore, but bolstering steel prices in the local market. Steelmakers’ profitability hasn’t improved significantly, signaling mills have been cautious as regards to the prospect for the future market and in concluding purchases for iron ore. It is expected that import iron ore prices may fluctuate within a limited range in the coming week as room for further increase could be limited at least until the local steel demand improves.

Iron ore futures prices at Dalian Commodity Exchange have increased by 0.53 percent today to RMB 760/mt ($106.6/mt) compared to the previous trading day, August 28, while increasing by RMB 30/mt ($4.2/mt) compared to August 22.

As of August 29, rebar futures at Shanghai Futures Exchange are standing at RMB 3,259/mt ($457/mt), increasing by RMB 85/mt ($11.9/mt) or 2.7 percent since August 22, while down 0.09 percent compared to the previous trading day, August 28.

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 7.1299