Published by:Shu Yi Zheng<>
21 May 2025 @ 12:06 UTC

Seaborne iron ore prices pushed up slightly on Wednesday May 21, amid steady demand, driven by high rates of hot metal production in China, sources told Fastmarkets. Key drivers The most-traded September iron ore futures contract on the Dalian Commodity Exchange (DCE) on Wednesday was up from the previous day’s closing price of 725 yuan ($100.46) per tonne.
And by 6:12 pm Singapore time, the most-traded June contract on the Singapore Exchange (SGX) was up by $0.25 per tonne compared with the previous settlement price of $99.40 per tonne.
A Shanghai-based analyst told Fastmarkets that iron ore demand was being supported by the high rates of hot metal production, which was itself being driven by rising steel prices and improved steelmaking margins.
The analyst said downstream steel demand was resilient because Chinese steel exports are soaring due to exporters rushing to ship products to capitalize on the 90-day pause in US-China tariffs, which came into effect on May 14.
The low iron ore inventories at Chinese mills and resulting destocking of port inventories in China were also providing support to iron ore prices, a Singapore-based trader said.
Other market participants said that while high hot metal production would support iron ore demand in the short term, the upside for iron ore prices was likely to be capped by uncertainty over steel demand in the coming months.
The dull season for steel demand is approaching, a trader based in Zhejiang province in eastern China said, with construction activity expected to be affected by warmer weather in the north and the rainy season in southern China.
Iron ore demand could soften after hot metal production reaches its peak, the trader added.
Market participants also expect seaborne iron ore supplies to increase because miners usually ramp up their iron ore shipments in May and June, so supply pressures could build up with the increase in arrivals at China’s ports.
In the seaborne market, a 170,000 tonnes cargo of 60.8% Fe Pilbara Blend fines, with July 6-15 laycan, was traded at $96.30 per tonne CFR Qingdao (61% Fe base).
Market participants estimated the float-price equivalent to be at a $1 per tonne discount to the July 62% Fe iron ore forward price, slightly narrower than Tuesday’s traded cargo estimates, which came in at a discount of around $1.27-1.37 per tonne.
In the high-grade fines market, a trader was offering 290,000 tonnes of 65% Fe Brazilian Carajas fines at a discount of $2 per tonne to a 65% Fe index on a trading platform on Wednesday.
The offered discount was wider than the trader’s offer discount of $1.60 per tonne on Monday and Tuesday, but no deal was concluded.
Fastmarkets’ iron ore indices 62% Fe fines, cfr Qingdao:$99.98 per tonne, up $0.02 per tonne 62% Fe low-alumina fines, cfr Qingdao:$99.22 per tonne, up $0.05 per tonne 58% Fe fines high-grade premium, cfr Qingdao:$88.17 per tonne, up $0.03 per tonne 65% Fe Brazil-origin fines, cfr Qingdao:$111.01 per tonne, up $0.03 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:791 yuan per wet metric tonne(implied 62% Fe China Port Price:$101.13 per dry tonne), up by 2 yuan per wmt 67.5% Fe pellet feed premium, cfr Qingdao:$0.80 per tonne, unchanged 67.5% Fe pellet feed, cfr Qingdao:$116.31 per tonne, up $0.13 per tonne 65% Fe concentrate premium, cfr Qingdao:$(5.50) per tonne, unchanged 65% Fe concentrate, cfr Qingdao:$105.13 per tonne, up $0.13 per tonne
Trades/offers/bids heard in the market BHP, Beijing Iron Ore Trading Center (COREX), 80,000 tonnes of 61.7% Fe Newman Blend fines, traded at $96.50 per tonne CFR Qingdao, laycan June 21-30
BHP, global ORE, 90,000 tonnes of 60.6% Fe Mining Area C fines, traded at $96.85 per tonne CFR Qingdao (62% Fe base), laycan June 21-30
Spot market, 90,000 tonnes of 60.6% Fe Mining Area C fines, traded at the June average of two 62% Fe iron ore fines index with a discount of $2 per tonne, laycan May 21-30
COREX, 290,000 tonnes of 65% Fe Carajas fines, offered at the June average of Fastmarkets’ 65% Fe index with a discount of $2 per tonne, bill of lading dated April 29
Rio Tinto, tender, 170,000 tonnes of 60.8% Fe Pilbara Blend fines, traded at $96.30 per tonne CFR Qingdao (61% Fe base), laycan July 6-15
Vale, tender, 70,000 tonnes of 64.6% Fe Pellet feed fines Guaiba 2, traded at the monthly average of Fastmarkets’ 65% Fe index at the month of notice of readiness at the port of discharge with a discount of 3.45%, bill of lading dated May 10.
Market participant indications Fastmarkets’ index for iron ore 62% Fe fines CFR Qingdao Pilbara Blend fines: $96.74-100.50 per tonne Brazilian Blend fines: $98.22-100.03 per tonne Jimblebar fines: $92.50-93.68 per tonne
Fastmarkets’ index for iron ore 65% Fe Brazil-origin fines CFR Qingdao Iron Ore Carajas: $110.60-112.00 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: $(2.50)-(3.00) per tonne Romeral Pellet Feed: $(2.00) 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 763-780 yuan per wmt in Shandong province and in the ports of Tangshan city on Wednesday, compared with 763-775 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 728.50 yuan per tonne on Wednesday, up by 3.50 yuan per tonne from Tuesday’s closing price.