Rebound in steel export demand pushes iron ore prices above $100 per tonne
Published by:Norman Fong<>
23 Apr 2025 @ 11:49 UTC

Seaborne iron ore prices posted another rebound on Wednesday April 23 following brief dip on Tuesday, in line with stronger demand for iron ore cargoes in China’s portside market driven by an increase in finished steel exports, Fastmarkets understands. An uptick in trading, sources said, with demand for imported raw materials showing visible signs of improvement compared with the first half of April.
Key drivers The most-traded September iron ore futures contract on the Dalian Commodity Exchange (DCE) on Wednesday moved up by 2.3% from the previous day’s closing price of 711 yuan ($97) per tonne.
And by 5:58pm Singapore time, the most-traded May contract on the Singapore Exchange (SGX) had moved up by $1.54 per tonne compared with Tuesday’s settlement price of $98.61 per tonne.
Improved trading sentiment was seen in the iron ore market in line with higher hot metal production by Chinese steel mills in the first half of April, according to a trader in Hong Kong, driven by stronger demand in the downstream market.
Sources told Fastmarkets that an uptick in demand for finished and semi-finished steel exports was a key factor in the improved demand for raw materials from Chinese steelmakers since late March.
A trader based in Shanghai told Fastmarkets that steel billet exports from China were at their highest level since the start of the year after surging past 1 million tonnes in early March due to strong demand from regional markets.
Steelmakers were able to increase prices on most steel products due to a rebound in demand, particularly in the export market a Singapore-based trader said, [leading to] some healthy profit margins in a period where raw material prices have been relatively suppressed at below $100 per tonne.
And domestic demand also showed some signs of recovery following weeks of inclement weather, which had hampered long steel sales, the source added.
A second Shanghai trader said that falling finished steel inventories across all products was a strong indicator for most steelmakers that overall demand is improving.
This incentivizes most mills to stock up on raw materials, the trader added.
In northern China, a trader in Beijing said that Chinese mills had been more active with iron ore procurement in the portside market since the middle of April and the relatively low cost of iron ore, paired with stronger steelmaking margins, was incentivizing most mills to ramp up hot metal production to keep up with demand – especially in the export markets.
Iron ore inventories in the Chinese portside market fell by 2.8 million tonnes to 145.50 million tonnes in the week ending Friday April 18, in line with an uptick in demand from end users, according to a local information provider.
An 80,000-tonne cargo of 62.5% Fe Pilbara Blend lump, with a laycan between May 25-June 3, was traded on a trading platform at the June average of a 62% Fe index plus a lump premium of $0.1525 per dry metric tonne unit (dmtu).
A second trader in Singapore told Fastmarkets that iron ore lump premiums had remained particularly stable – at around $0.1450-0.1550 per dmtu – over the past month, despite the recent uptick in domestic coke prices.
The trader said most market participants were not expecting to see a continued rally in coke prices because the first round of upward adjustments only took place in the second trading week of April, which should mean that sintering costs remain relatively stable in the coming weeks.
Pellet feed, concentrates Pellet feed premiums continued to hold steady at $0.50 per tonne based on a 65% Fe index, in line with the limited liquidity in the seaborne market.
Sources said the uptick in steelmaking margins in second half April had not, so far, translated into stronger demand for iron ore pellet cargoes in the portside market.
The cost of sintering remains low despite the first round of coke price increase, so there is still no added cost efficiency in switching to the use of pellets at current prices, a second trader in Beijing said.
Fastmarkets’ iron ore indices 62% Fe fines, cfr Qingdao:$100.62 per tonne, up $1.54 per tonne 62% Fe low-alumina fines, cfr Qingdao:$100.21 per tonne, up $1.54 per tonne 58% Fe fines high-grade premium, cfr Qingdao:$87.43 per tonne, up $1.48 per tonne 65% Fe Brazil-origin fines, cfr Qingdao:$113.48 per tonne, up $1.49 per tonne 62.5% Fe Australia-origin lump ore premium, cfr Qingdao:$0.1500 per dry metric tonne unit (dmtu),up $0.0100 per dmtu 62% Fe fines, fot Qingdao:788 yuan per wet metric tonne (implied 62% Fe China Port Price:$99.45 per dry tonne), unchanged 67.5% Fe pellet feed premium, cfr Qingdao:$0.50 per tonne, unchanged 67.5% Fe pellet feed, cfr Qingdao:$117.35 per tonne, up $0.60 per tonne 65% Fe concentrate premium, cfr Qingdao:$(5.20) per tonne, down $0.10 per tonne 65% Fe concentrate, cfr Qingdao:$106.70 per tonne, up $0.50 per tonne
Trades/offers/bids heard in the market Rio Tinto, global ORE, 80,000 tonnes of 62.5% Fe Pilbara Blend lump, traded at the June average of a 62% Fe index plus a lump premium of $0.1525 per dry metric tonne per unit, laycan May 25-June 3
Vale, tender, 170,000 tonnes of 63.24% Fe Pellet feed iron Tubarao, traded at May average of 62% Fe iron ore fines index with a discount of 2.9%, bill of lading dated April 18
BHP, tender, 196,550 tonnes of 59.03% Fe Jingbao fines, traded at the May average of two 62% Fe iron ore fines indices with a discount of $5.92 per tonne, bill of lading dated April 21
Market participant indications Fastmarkets’ index for iron ore 62% Fe fines CFR Qingdao Pilbara Blend fines: $100.40-101.24 per tonne Brazilian Blend fines: $99.86-100.45 per tonne Newman fines: $97.50-98.34 per tonne Mac fines: $96.84-97.84 per tonne Jimblebar fines: $93.50-94.84 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: $(2.50)-(3.00) 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 771-790 yuan per wmt in Shandong province, Tianjin city, and in the port of Tangshan city on Wednesday, compared with 767-771 yuan per wmt on Tuesday.
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 727.50 yuan ($100) per tonne on Wednesday, up by 16.50 yuan per tonne from the previous closing price.