Iron price prices extend three-day rally on stronger import interest
Published by:Norman Fong<>
15 Apr 2025 @ 10:57 UTC

Seaborne iron ore prices continued to rise on Tuesday April 15, in line with a recovery of buying interest in both the physical and derivative markets following a sharp drop in prices since early April.Trading continued to be significantly stronger compared to the previous week with more offers emerging in the primary seaborne market for May-loading cargoes, according to sources.
Key drivers The most-traded September iron ore futures contract on the Dalian Commodity Exchange (DCE) rose by 1% from the previous closing price of 706 yuan ($97) per tonne.
By 5:56 pm Singapore time, the most-traded May contract on the Singapore Exchange (SGX) had increased by $0.57 per tonne compared to the previous settlement price of $98.13 per tonne.
Trading sentiment for forward-month derivatives continued to improve with institutional investors showing stronger interest in taking up further positions in iron ore following the broad-based selloff in early April, according to a trader in Hong Kong.
The trader in Hong Kong added that most market participants have a generally positive view of iron ore prices trending above the $100-per-tonne mark over the coming weeks, so buying appetite is expected to remain strong at any level below $99 per tonne.
There has been significantly less pressure on Chinese mills in keeping operating costs low following the sharp dip in iron ore prices, and so portside demand for iron ore has been fairly strong, a Shanghai-based trader said.
Most reinforcing bar (rebar) producers have been able to achieve a net profit of 100 yuan per tonne and most hot-rolled coil producers are earning about 200 yuan per tonne, the Shanghai-based trader added.
Raw material demand from Chinese steelmakers has remained robust following the sharp decline in iron ore prices in early April, and some mills have taken the opportunity to ramp up on inventory, a trader in Hebei told Fastmarkets.
The Hebei-based trader nonetheless added that Chinese mills could easily revert to buying on a needs-only basis once steelmaking profit margins begin to fall back in line with lukewarm steel demand.
An analyst based in Shanghai told Fastmarkets that spot steel prices are expected to soften moving into the second half of the week due to weak demand from domestic buyers.
The analyst also noted that traded volumes for rebar futures have been significantly lower over the past four trading days with most traders waiting for further signs of a clear price direction.
A 190,000-tonne cargo of 62% Fe Pilbara Blend fines with a laycan between May 24 and June 2 was traded at the May average of a 62% Fe index plus a premium of $0.50 per tonne in the spot market, according to various sources.
The traded premium is slightly lower than that seen for previous trades for May-loading cargoes, which were at a premium of around $0.80 per tonne, according to a trader in Ningbo.
Pellet feed and concentrates Pellet feed premiums have continued to hold steady at $0.50 per tonne based on a 65% Fe index, with some market participants expecting premiums to remain at current levels until a significant recovery in steelmaking margins has been realized.
A trader in Xiamen told Fastmarkets that the uptick in domestic coke prices has had minimal impact on spot pellet demand in the portside market, with most market participants not expecting further rounds of price increases due to poor demand from mills.
Some pellet feed sellers are under immense pressure to lower their prices against low bids to sell into the CFR China market due to weak import demand from Chinese pelletizers, a trader in Beijing said.
The Beijing-based trader added that bids for pellet feed cargoes from end users are mostly at heavy discounts, with most buyers expecting to utilize the pellet feed cargoes as sintering feedstocks directly in their blast furnaces.
Fastmarkets iron ore indices 62% Fe fines, cfr Qingdao: $99.39 per tonne, up $0.52 per tonne 62% Fe low-alumina fines, cfr Qingdao: $98.94 per tonne, up $0.52 per tonne 58% Fe fines high-grade premium, cfr Qingdao: $86.09 per tonne, up $0.62 per tonne 65% Fe Brazil-origin fines, cfr Qingdao: $112.32 per tonne, up $0.49 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: 789 yuan per wet metric tonne (implied 62% Fe China Port Price: $99.62 per dry tonne), up by 15 yuan per wmt 67.5% Fe pellet feed premium, cfr Qingdao: $0.50 per tonne, unchanged 67.5% Fe pellet feed, cfr Qingdao: $116.68 per tonne, up $0.30 per tonne 65% Fe concentrate premium, cfr Qingdao: $(5.00) per tonne, unchanged 65% Fe concentrate, cfr Qingdao: $106.30 per tonne, up $0.30 per tonne
Trades/offers/bids heard in the market BHP, Beijing Iron Ore Trading Center, 80,000 tonnes of 60.6% Fe Mining Area C fines, traded at $94 per tonne CFR Qingdao, laycan May 19-28
Beijing Iron Ore Trading Center, 190,000 tonnes of 56.5% Fe Super Special Fines, traded at the May average of a 62% Fe index with a discount of 14%, laycan May 6-15
BHP, tender, 90,000 tonnes of 60.5% Fe Jimblebar fines, traded at the May average of two 62% Fe indices with a discount of $6.24 per tonne, laycan May 6-15
BHP, tender, 190,000 tonnes of 61.9% Fe unscreened Newman lump, traded at the May average of two 62% Fe iron ore fines indices with a discount of $4.28 per tonne, laycan May 11-20
Spot market, 190,000 tonnes of 62% Fe Pilbara Blend fines, traded at the May average 62% Fe iron ore fines index with a premium of $0.50 per tonne, laycan May 24 to June 2
Market participants’ indications Fastmarkets’ index for iron ore 62% Fe fines CFR Qingdao Pilbara Blend fines: $99.00-99.74 per tonne Brazilian Blend fines: $98.11-99.45 per tonne Newman fines: $95.94-96.59 per tonne Jimblebar fines: $92.09-92.49 per tonne
Fastmarkets’ index for iron ore 67.5% Fe Pellet Feed Premium, CFR Qingdao Minas Rio BFPF Pellet Feed: $(3.50)-(5.00) per tonne Atacama CNN Pellet Feed: $(2.00)-(3.00) per tonne Romeral Pellet Feed: $(2.00)-(2.50) per tonne Shougang Hierro Peru 70: $0.50-0.60 per tonne Kaunis Pellet Feed: $0.00-1.00 per tonne Metinvest 68% Pellet Feed: $(2.30)-(3.00) 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: $(4.20)-(4.65) per tonne
Port prices Pilbara Blend fines were traded at 770-778 yuan per wmt in Shandong province and the ports of Tangshan city on Tuesday, compared with 764-778 yuan per wmt on Monday.
The latest range is equivalent to about $97-98 per tonne in the seaborne market.
Dalian Commodity Exchange The most-traded September iron ore futures contract on the exchange closed at 713 yuan per tonne on Tuesday, up by 7 yuan per tonne from the previous closing price.