Published by:Shu Yi Zheng<>
16 May 2025 @ 12:13 UTC

Seaborne iron ore prices edged lower on Friday May 16, in line with futures and swaps prices, amid declining demand for iron ore in the physical market and reduced hot metal production in China, sources told Fastmarkets. Key drivers The most-traded September iron ore futures contract on the Dalian Commodity Exchange (DCE) declined day on day on Friday, falling from Thursday’s closing price of 736.50 yuan ($102) per tonne.
And by 6:14 pm Singapore time, the most-traded June contract on the Singapore Exchange (SGX) was down by $1.39 per tonne compared with the previous settlement price of $101.19 per tonne.
A trader based in the eastern China province of Zhejiang said that iron ore futures fell after prices pulled back from the recent gains driven by the easing trade tensions between China and the US.
The trader said that while the futures prices had rallied earlier in the week on improved market sentiment, spot prices had failed to keep pace.
Average daily hot metal production in China dipped slightly to 2.4477 million tonnes, down by 8,700 tonnes from the previous week, according to a local information provider.
Iron ore demand retreated slightly and that weighed on spot prices, sources said, narrowing the futures-spot prices spread.
A Singapore-based trader said that demand was expected to remain resilient, along with the price outlook, in the short term, supported by strong hot metal output amid reasonable steelmaking profits and declining port inventories in China.
Iron ore inventories at 47 Chinese ports fell by 0.18 million tonnes to 147.47 million tonnes as of May 16, according to a local information provider.
But some market participants told Fastmarkets they expect iron ore demand to soften in the coming months because hot metal production has started to decline from its peak.
In southern China, a Hunan-based steelmaker said that downstream steel demand could be affected by slower construction activity in the rainy season around late June and early July, potentially reducing demand for raw materials.
In the seaborne secondary market, the premium for a 62% Fe mid-grade fines cargo weakened to $0.55 per tonne on top of a 62% Fe index on Friday, down from $0.80-0.90 per tonne earlier this week, market participants said.
They added that the discount for 60.5% Fe lower-tier mid-grade fines cargoes was stable around $5.90-6.10 per tonne to 62% Fe indices.
Concentrate, pellet feed A major Australian miner widened its fixed monthly discount for 65% Fe magnetite pellet feed to $5.50 per tonne on top of a 65% Fe index in June, down from a $4.50 per tonne discount in May.
In the north, a Beijing-based steelmaker said that pellet feed prices continued to be suppressed by weak demand for pellet in China.
Fastmarkets’ iron ore indices 62% Fe fines, cfr Qingdao:$100.98 per tonne, down $1.23 per tonne 62% Fe low-alumina fines, cfr Qingdao:$100.13 per tonne, down $1.22 per tonne 58% Fe fines high-grade premium, cfr Qingdao:$88.49 per tonne, down $1.20 per tonne 65% Fe Brazil-origin fines, cfr Qingdao:$112.41 per tonne, down $1.27 per tonne 62.5% Fe Australia-origin lump ore premium, cfr Qingdao:$0.1550 per dry metric tonne unit (dmtu), unchanged 62% Fe fines, fot Qingdao:776 yuan per wet metric tonne(implied 62% Fe China Port Price:$99.20 per dry tonne), down by 20 yuan per wmt 67.5% Fe pellet feed premium, cfr Qingdao:$0.80 per tonne, unchanged 67.5% Fe pellet feed, cfr Qingdao:$116.96 per tonne, down $1.17 per tonne 65% Fe concentrate premium, cfr Qingdao:$(5.50) per tonne, down $0.10 per tonne 65% Fe concentrate, cfr Qingdao:$105.88 per tonne, down $1.27 per tonne
Trades/offers/bids heard in the market BHP, Beijing Iron Ore Trading Center, 90,000 tonnes of 60.5% Fe Jimblebar fines, traded at June average of two 62% Fe iron ore fines index with a discount of $6.10 per tonne, laycan June 16-25
Vale, tender, 70,000 tonnes of 65.64% Fe Pellet Feed Guaiba 2, bill of lading dated May 2
Market participant indications Fastmarkets’ index for iron ore 62% Fe fines CFR Qingdao Pilbara Blend fines: $100.05-101.19 per tonne Brazilian Blend fines: $99.49-100.20 per tonne Newman fines: $97.59-98.49 per tonne Mac fines: $97.19-98.19 per tonne Jimblebar fines: $93.60-94.19 per tonne
Fastmarkets’ index for iron ore 65% Fe Brazil-origin fines CFR Qingdao Iron Ore Carajas: $111.40-113.00 per tonne
Fastmarkets’ index for iron ore 67.5% Fe Pellet Feed Premium, CFR Qingdao Minas Rio BFPF Pellet Feed: $(3.00)-(5.00) per tonne Atacama CNN Pellet Feed: $(2.00)-(3.00) per tonne Shougang Hierro Peru 70: $0.25-0.60 per tonne Kaunis Pellet Feed: $0.00-1.00 per tonne Metinvest 68% Pellet Feed: $(3.00)-(4.00) per tonne
Fastmarkets’ index for iron ore 65% Fe Concentrate Premium, CFR Qingdao Citic Pacific Concentrate: $(5.50) per tonne Karara Concentrate: $(6.89) per tonne Metinvest SevGok Concentrate: $(5.00)-(5.50) per tonne
Port prices Pilbara Blend fines were traded at 762-780 yuan per wmt in Shandong province, and in the ports of Tangshan city on Friday, compared with 773-795 yuan per wmt on Thursday.
The latest range is equivalent to about $97-100 per tonne in the seaborne market.
Dalian Commodity Exchange The most-traded September iron ore futures contract on the exchange closed at 728 yuan per tonne on Friday, down by 8.50 yuan per tonne from Thursday’s closing price.