Iron ore prices drop on weak steel data, trade war concerns
Published by:Shu Yi Zheng<>
8 May 2025 @ 11:59 UTC

Seaborne iron ore prices dipped on Thursday May 8, in line with futures and swap prices, after weak steel data and US-China trade tensions weighed on market sentiment, sources have told Fastmarkets. Key drivers The most-traded September iron ore futures contract on the Dalian Commodity Exchange (DCE) was down by 2% on Thursday from the previous day’s closing price of 708 yuan ($98) per tonne.
By 6:24 pm Singapore time, the most-traded June contract on the Singapore Exchange (SGX) had slid by $1.77 per tonne compared with the previous settlement price of $98.32 per tonne.
The drop in iron ore futures was primarily due to soft downstream steel demand reflected in this week’s steel inventory data, a Singapore-based trader said.
Steel apparent demand weakened compared to last week, pressuring raw material prices, the trader added.
A Zhejiang-based trader said that market sentiment was further dampened by US President Donald Trump’s remarks that he would not consider lowering the 145% tariffs on Chinese goods to revive trade negotiations.
In the seaborne physical market, 62% Fe mid-grade iron ore fines cargoes were traded at the June average of a 62% Fe index plus premiums of around $1.20-1.30 per tonne in primary market this week.
At the same time, tradeable premiums in the secondary spot market were slightly lower, participants told Fastmarkets.
A 170,000-tonne cargo of 62% Fe Pilbara Blend fines, with May 27-June 5 laycan, was traded at the June average of a 62% Fe iron ore fines index plus a premium of $0.95 per tonne in the secondary market on Thursday.
The demand for lower-grade iron ore fines cargoes has recently increased due to poor steelmaking margins and the low coke cost in China, a second Singapore-based trader said, noting that the coke price remained low in China due to high supply and ample inventory.
The trader added that lower prices for coke allows Chinese mills to use more lower-grade materials with higher silica content in blast furnaces.
A 190,000-tonne cargo of 56.5% Fe Super Special Fines was traded at the June average of a 62% Fe iron ore fines index with a discount of 12.5% on a trading platform on Thursday. The traded discount narrowed from the miner’s monthly fixed discount in May of 13.75%.
And an 80,000-tonne cargo of 60.5% Fe Jimblebar fines was traded at the June average of two 62% Fe iron ore fines indices with a discount of $5.90 per tonne via a tender on Thursday. The traded discount narrowed from last week’s transacted discount of $6.70 per tonne.
In the iron ore lump market, market participants said that the premium for 62% mid-grade iron ore lumps was supported at $0.1600 per dry metric tonne on top of a 62% Fe index.
Limited seaborne supply and tight inventories in some Chinese ports supported lump premium, a Shanghai-based trader said.
A Shandong-based trader said that the demand for iron ore lumps was supported due to high hot metal production volume in China.
Pellet feed and concentrates A 100,000-tonne cargo of 67.1% Fe Iron Bridge Pellet Feed was traded at the June average of a 65% Fe index with a discount of $0.98 per tonne on Wednesday.
The traded discount has narrowed from the previous trade, that saw a discount of $1.89 per tonne to a 65% Fe index in November last year.
A Hunan-based steelmaker source said that the narrower discount was because the supply of other high-grade pellet feed materials had tightened recently.
But the demand for high-grade pellet feed materials remained weak in China due to the poor steelmaking margins among Chinese mills and the poor pellet feed premium in China, the steelmaker source added.
Fastmarkets iron ore indices 62% Fe fines, cfr Qingdao: $97.82 per tonne, down $1.62 per tonne 62% Fe low-alumina fines, cfr Qingdao: $96.96 per tonne, down $1.63 per tonne 58% Fe fines high-grade premium, cfr Qingdao: $85.47 per tonne, down $1.17 per tonne 65% Fe Brazil-origin fines, cfr Qingdao: $109.38 per tonne, down $1.63 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: 777 yuan per wet metric tonne (implied 62% Fe China Port Price: $99.12 per dry tonne), down by 8 yuan per wmt 67.5% Fe pellet feed premium, cfr Qingdao: $0.80 per tonne, up $0.30 per tonne 67.5% Fe pellet feed, cfr Qingdao: $113.64 per tonne, down $1.69 per tonne 65% Fe concentrate premium, cfr Qingdao: $(5.20) per tonne, unchanged 65% Fe concentrate, cfr Qingdao: $102.81 per tonne, down $1.99 per tonne
Trades/offers/bids heard in the market Beijing Iron Ore Trading Center, 190,000 tonnes of 56.5% Fe Super Special Fines, traded at the June average of a 62% Fe iron ore fines index with a discount of 12.5%, laycan June 3-12
BHP, tender, 80,000 tonnes of 60.5% Fe Jimblebar fines, traded at the June average of two 62% Fe iron ore fines index with a discount of $5.90 per tonne, laycan June 6-15
Spot market, 170,000 tonnes of 62% Fe Pilbara Blend fines, traded at the June average of a 62% Fe iron ore fines index with a premium of $0.95 per tonne, laycan May 27-June 5
Vale, tender, 390,000 tonnes of 60.34% Fe Standard Sinter Fines Carajas, traded at the monthly average of Fastmarkets’ 62% Fe index at the month of notice of readiness at the port of discharge with a discount of 8.24%, bill of lading dated April 27
Fortescue, tender, 100,000 tonnes of 67.1% Fe Iron Bridge Pellet Feed, traded at the June average of a 65% Fe index with a discount of $0.98 per tonne, laycan June 3-12
Market participants’ indications Fastmarkets’ index for iron ore 62% Fe fines CFR Qingdao Pilbara Blend fines: $97.00-98.03 per tonne Brazilian Blend fines: $96.17-97.50 per tonne Newman fines: $94.03-94.63 per tonne Mac fines: $93.83-94.63 per tonne Jimblebar fines: $90.03-90.73 per tonne
Fastmarkets’ index for iron ore 65% Fe Brazil-origin fines CFR Qingdao Iron Ore Carajas: $107.50-110.50 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: $(4.50) per tonne Karara Concentrate: $(6.89) per tonne Metinvest SevGok Concentrate: $(4.20)-(5.50) per tonne
Port prices Pilbara Blend fines were traded at 752-767 yuan per wmt in Shandong province and the ports of Tangshan city on Thursday, compared with 760-777 yuan per wmt on Wednesday.
The latest range is equivalent to about $96-98 per tonne in the seaborne market.
Dalian Commodity Exchange The most-traded September iron ore futures contract on the exchange closed at 693.50 yuan per tonne on Thursday, down by 14.50 yuan per tonne from Wednesday’s closing price.