Published by: Shu Yi Zheng<>
21 Mar 2025 @ 11:51 UTC

Iron ore prices continued to fall on Friday March 21, in line with futures and swaps prices, amid an increase in Chinese port inventories and weak downstream demand for steel, sources told Fastmarkets.

Key drivers The most-traded May iron ore futures contract on the Dalian Commodity Exchange (DCE) on Friday was down from the previous day’s closing price of 762 yuan ($105) per tonne.
And by 5:04 pm Singapore time, the most-traded April contract on the Singapore Exchange (SGX) was down by $0.75 per tonne compared with the previous settlement price of $100.50 per tonne.
A Zhejiang-based trader told Fastmarkets that weak downstream steel prices were weighing iron ore market sentiment, leading to decline in the futures market.
Construction steel demand has been weaker than expected so far in what is usually the peak demand season (March-April), the trader added.
And market participants were pessimistic about steel exports and the property sector in China.
But demand for iron ore was supported by rising hot metal production in China this week, a Shanghai-based trader said.
Average daily hot metal output reached 2.36 million tonnes this week, up by 56,700 tonnes week on week, according to a local information provider.
Even so, the iron ore market remains under pressure due to ample supplies and rising port inventories, a Shandong-based trader said, adding that the current weak market fundamentals are likely persist for some time.
Iron ore inventories across 47 major Chinese ports increased by 0.19 million tonnes week on week to 149.14 million tonnes as of Friday, according to a local information provider.
And in the seaborne market, Australian mid-grade fines, particularly Pilbara Blend (PB) fines, have maintained strong premiums in the secondary market due to tight supplies, a Singapore-based trader told Fastmarkets.
A 120,000-tonne cargo of PB fines, with April 21-30 laycan, was traded at the April average of a 62% Fe index plus a premium of $0.90 per tonne on Thursday.
And a second 120,000-tonne cargo of PB fines, with April 14-23 laycan, was traded at the April average of a 62% Fe index plus a premium of $1.15 per tonne this week.
In contrast, ample supplies of Brazilian mid-grade, low-alumina fines and high-grade fines are weighing on price premiums, a Shanghai-based trader said.
Fastmarkets’ iron ore 62% Fe low-alumina fines, cfr Qingdao has been in an inverse price spread with Fastmarkets’ iron ore 62% Fe fines, cfr Qingdao since mid-February.
A 170,000-tonne cargo of 62% Fe Brazilian Blend fines, was traded at $101.05 per tonne CFR Qingdao on a trading platform on Thursday.
Following the transaction, the inverse price difference between the two indices widened further to $0.63 on Thursday, from $0.28 per tonne on Wednesday.
A second Singapore-based trader said that demand for high-grade iron ore fines remained weak despite improving steelmaking margins in China.
And Steelmakers remained cautious due to the weak steel demand outlook, the trader added.
Concentrate and pellet feed There was market chatter that a cargo of 62% Fe Australian magnetite pellet feed with mid-April laycan was traded at the May average of a 62% Fe index with a discount of $1.98 per tonne on Friday.
And in eastern China, an Anhui-based trader said weak demand and prices for pellets in the seaborne market was continuing to weigh on premiums for pellet-feed products.
Fastmarkets’ iron ore indices 62% Fe fines, cfr Qingdao: $100.96 per tonne, down $0.72 per tonne 62% Fe low-alumina fines, cfr Qingdao: $100.33 per tonne, down $0.72 per tonne 58% Fe fines high-grade premium, cfr Qingdao: $87.16 per tonne, down $0.71 per tonne 65% Fe Brazil-origin fines, cfr Qingdao: $113.97 per tonne, down $0.73 per tonne 62.5% Fe Australia-origin lump ore premium, cfr Qingdao: $0.1400 per dry metric tonne unit (dmtu), unchanged 62% Fe fines, fot Qingdao: 782 yuan per wet metric tonne (implied 62% Fe China Port Price: $99.58 per dry tonne), down by 4 yuan per wmt 67.5% Fe pellet feed premium, cfr Qingdao: $0.70 per tonne, unchanged 67.5% Fe pellet feed, cfr Qingdao: $118.50 per tonne, down $0.88 per tonne 65% Fe concentrate premium, cfr Qingdao: $(4.80) per tonne, unchanged 65% Fe concentrate, cfr Qingdao: $107.92 per tonne, down $0.88 per tonne
Trades/offers/bids heard in the market Spot market, tender, 50,000 tonnes of 63% Fe Essel pellet, offered at the April average of a 62% Fe iron ore fines index with a premium of $8 per tonne and plus Fe VIU adjustment, laycan March 21-31
Spot market, 75,000 tonnes of 65% Fe pellet from the Middle East, traded at the April average of a 65% Fe iron ore fines index plus a premium of $8 per tonne to North China, April arrival
Market participant indications Fastmarkets’ index for iron ore 62% Fe fines CFR Qingdao Pilbara Blend fines: $100.49-101.00 per tonne Brazilian Blend fines: $100.20-100.70 per tonne Mac fines: $97.19-97.39 per tonne Jimblebar fines: $94.69 per tonne
Fastmarkets’ index for iron ore 65% Fe Brazil-origin fines CFR Qingdao Iron Ore Carajas: $113.70-114.00 per tonne
Fastmarkets’ index for iron ore 67.5% Fe Pellet Feed Premium, CFR Qingdao Minas Rio BFPF Pellet Feed: $(3.60)-(4.70) per tonne Atacama CNN Pellet Feed: $(1.50)-(2.75) per tonne Romeral Pellet Feed: $(1.00)-(2.00) per tonne Shougang Hierro Peru 70: $0.50-0.60 per tonne Kaunis Pellet Feed: $0.50-1.00 per tonne Metinvest 68% Pellet Feed: $(2.00)-(2.50) 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)-(4.50) per tonne Karara Concentrate: $(5.00)-(5.65) per tonne Metinvest SevGok Concentrate: $(4.00)-(4.50) per tonne
Port prices Pilbara Blend fines were traded at 761-764 yuan per wmt in Shandong province on Friday, compared with 755-782 yuan per wmt on Thursday.
The latest range is equivalent to about $97-97 per tonne in the seaborne market.
Dalian Commodity Exchange The most-traded May iron ore futures contract on the exchange closed at 757.50 yuan per tonne on Friday, down by 4.50 yuan per tonne from Thursday’s closing price.