Published by: Shu Yi Zheng<>
28 Feb 2025 @ 12:14 UTC

Seaborne iron ore prices dropped on Friday February 28 in line with futures and swap prices, with market sentiment affected by the trade war between the US and China, sources told Fastmarkets.Key drivers
The most-traded May iron ore futures contract on the Dalian Commodity Exchange (DCE) was lower on Friday compared with the previous day’s closing price of 805 yuan ($111) per tonne.
By 5:41 pm Singapore time, the most-traded April contract on the Singapore Exchange (SGX) was lower by $1.93 per tonne compared with the previous settlement price of $105.08 per tonne.
The most-traded iron ore contract on the SGX declined on Friday due to the trade war between the US and China which affected market sentiment, according to one Zhejiang-based trader.
US President Donald Trump announced an additional 10% tariff on Chinese imports on Thursday. This followed the announcement that the US would impose a 10% tariff on Chinese imports earlier this month, bringing the total tariffs on Chinese goods to 20%.
In addition to the US tariffs, Vietnam and South Korea have also imposed tariffs on Chinese steel, which are expected to affect the Chinese steel export market, sources said.
A Hebei-based steelmaker said that demand for iron ore has been lukewarm due to tepid steel demand in the Chinese domestic market.
Steel mills in China do not have the incentive to resume hot metal production, the steelmaker added.
The daily average hot metal production of 247 sample mills in China reached 2.28 million tonnes during the week to February 28, a slight increase of 4,300 tonnes compared with the previous week, according to a local information provider.
A major Australian iron ore producer widened its March monthly fixed discounts for its 56% Fe and 58% Fe iron ore fines, sources said.
A Singapore-based trader said that ample supply of non-mainstream low-grade iron ore fines, such as SP10 fines and MB fines, has pressured prices of other Australian low-grade fines.
Prices of mid-grade fines have risen due to the impact of recent cyclones in Australia, but low-grade and high-grade fines prices could not match the same extent of price increase, the trader added.
Earlier increases in iron ore prices have squeezed steelmaking profits, leading to poor demand for high-grade iron ore fines, a Shanghai-based trader said.
However, it is still unclear whether the cost-effectiveness of blending high- and low-grade ores is viable and that further observation is needed, the Shanghai-based trader added.
On the supply side, shipments from Australia recovered last week from the disruption due to cyclones, but shipment arrivals at the Chinese portside market this week have decreased, leading to a drop in port inventories.
The total inventory of imported iron ore at 47 Chinese ports reached 157.56 million tonnes as of Friday, down by 1.74 million tonnes from the previous week, according to a local information provider.
Concentrate and pellet feed A 167,100-tonne cargo of Peruvian pellet feed with an estimated arrival at a Chinese port in mid-March was traded this week at a premium of $1.40 per tonne on top of a 65% Fe index.
The traded premium was $0.28 per tonne lower than the previous traded premium, which was $1.68 per tonne, in January.
Demand for high-grade pellet feed was weak due to poor steelmaking margins of Chinese mills, a Hunan-based steelmaker said.
With the decline in coke prices, Chinese mills prefer to use sintered ores compared with higher cost direct-charged materials such as iron ore lump and pellet, the steelmaker added.
Fastmarkets iron ore indices 62% Fe fines, cfr Qingdao: $103.85 per tonne, down $1.63 per tonne 62% Fe low-alumina fines, cfr Qingdao: $103.18 per tonne, down $1.61 per tonne 58% Fe fines high-grade premium, cfr Qingdao: $90.03 per tonne, down $2.15 per tonne 65% Fe Brazil-origin fines, cfr Qingdao: $116.91 per tonne, down $1.63 per tonne 62.5% Fe Australia-origin lump ore premium, cfr Qingdao: $0.1450 per dry metric tonne unit (dmtu), unchanged 62% Fe fines, fot Qingdao: 821 yuan per wet metric tonne (implied 62% Fe China Port Price: $104.05 per dry tonne), down by 2 yuan per wmt 67.5% Fe pellet feed premium, cfr Qingdao: $0.80 per tonne, unchanged 67.5% Fe pellet feed, cfr Qingdao: $121.95 per tonne, down $1.75 per tonne 65% Fe concentrate premium, cfr Qingdao: $(4.50) per tonne, unchanged 65% Fe concentrate, cfr Qingdao: $111.40 per tonne, down $1.75 per tonne
Trades/offers/bids heard in the market Spot market, tender, 50,000 tonnes 63% Fe KIOCL pellet, traded at $105.65 per tonne FOB India, laycan March 1-15
Spot market, 50,000 tonnes 63% Fe KIOCL pellet, traded at March average 62% Fe iron ore fines index with a premium of $11 per tonne and plus Fe VIU adjustment, laycan March 1-15
Spot market, 75,000 tonnes of 65% Fe pellet from the Middle East, offered at the March average of a 65% Fe iron ore fines index plus a premium of $11 per tonne to riverside of China, March arrival
Market participants’ indications Fastmarkets’ index for iron ore 62% Fe fines CFR Qingdao Pilbara Blend fines: $103.00-104.50 per tonne Brazilian Blend fines: $102.50-103.85 per tonne Newman fines: $101.42-102.42 per tonne Mac fines: $99.62-100.82 per tonne Jimblebar fines: $97.39-98.42 per tonne
Fastmarkets’ index for iron ore 65% Fe Brazil-origin fines CFR Qingdao Iron Ore Carajas: $115.50-117.80 per tonne
Fastmarkets’ index for iron ore 67.5% Fe Pellet Feed Premium, CFR Qingdao Minas Rio BFPF Pellet Feed: $(3.50)-(3.80) per tonne Atacama CNN Pellet Feed: $(2.00)-(2.75) per tonne Romeral Pellet Feed: $(1.00)-(1.50) per tonne Shougang Hierro Peru 70: $1.40 per tonne Kaunis Pellet Feed: $0.50-1.00 per tonne Metinvest 68% Pellet Feed: $(1.80)-(2.50) per tonne Iron Bridge 66.5%: $(1.90)-(1.95) per tonne Ferrexpo 67%: $(2.00)-(3.50) per tonne
Fastmarkets’ index for iron ore 65% Fe Concentrate Premium, CFR Qingdao Citic Pacific Concentrate: $(4.00) per tonne Karara Concentrate: $(5.65)-(6.00) per tonne Metinvest SevGok Concentrate: $(4.00)-(4.30) per tonne
Port prices Pilbara Blend fines were traded at 797-810 yuan per wmt in Shandong province and the ports of Tangshan city on Friday, compared with 801-815 yuan per wmt on Thursday.
The latest range is equivalent to about $101-103 per tonne in the seaborne market.
Dalian Commodity Exchange The most-traded May iron ore futures contract on the exchange closed at 799.50 yuan per tonne on Friday, down by 5.50 yuan per tonne from Thursday’s closing price.