Seaborne iron ore prices edge lower on declining value of mid-grade fines
Published by:Shu Yi Zheng<>
20 May 2025 @ 11:46 UTC

Seaborne iron ore prices edged down on Tuesday May 20, with discounts for lower-tier mid-grade fines widening, while low-grade fines prices were being supported by speculative demand, sources told Fastmarkets. Key drivers The most-traded September iron ore futures contract on the Dalian Commodity Exchange (DCE) on Tuesday was higher than the previous day’s closing price of 722.50 yuan ($100) per tonne.
By 5:59pm Singapore time, the most-traded June contract on the Singapore Exchange (SGX) was down by $0.10 per tonne compared with the previous settlement price of $99.45 per tonne.
A Singapore-based trader said that iron ore prices were being supported in the Chinese portside market by healthy demand and destocking of iron ore port inventories.
Due to decrease in shipment arrived at Chinese portside recently, iron ore inventories at 47 Chinese ports dropped to 146.28 million tonnes as of May 19, a 2.58 million tonnes decrease compared to last Monday, according to a local information provider.
In the seaborne physical market, a 170,000 tonnes cargo of 60.8% Fe Pilbara Blend Fines (PBF) with July 5-14 laycan, was traded at $95.71 per tonne on a 61% Fe basis CFR Qingdao on Tuesday.
Market participants estimated the float-price equivalent to be at a $1.27-1.37 per tonne discount to the July 62% Fe iron ore forward price.
A Zhejiang-based trader said that the discount level was narrower compared to another 60.8% Fe PBF trade on Monday, which had a float-price equivalent of around $0.40 per tonne.
The trader said the bid price for 60.8% Fe PBF was around $2.00 per tonne to a 62% Fe fines index, with 60.6% Fe fines cargoes tradable with a discount of around $2.20 per tonne to a June 62% Fe index.
In the secondary market, 62% Fe PBF cargoes were tradable at a premium of around $0.50-0.60 per tonne on top of a 62% Fe index, market participants said.
A 90,000-tonne cargo of 60.5% Fe Jimblebar fines, with June 21-30 laycan, was traded at the June average of two 62% Fe iron ore fines indices with a discount of $6.60 per tonne on a trading platform on Tuesday.
The traded discount widened from the previous discount of $6.10 per tonne in a deal on Friday.
In the high-grade fines market, a trader was offering 290,000 tonnes of 65% Fe Brazilian Carajas fines at a discount of $1.60 per tonne to a 65% Fe index on a trading platform on Tuesday.
The trader offered the same cargo on Monday, but no deal was concluded, Fastmarkets understands.
A Shanghai-based trader said that larger vessels, of 290,000 tonnes or more, were usually traded at a higher discount than smaller vessels, because larger ships are unable to enter riverside ports in China.
The trader estimated the tradable discount at around $2-2.50 per tonne to 65% Fe index and said that, other than ship sizes, thin steelmaking margins and cheap coke price in China were limiting demand for high-grade fines.
While demand for high-grade fines cargoes remains poor, speculative demand for lower-grade fines supported prices for low-grade material in the Chinese portside market, a Shanxi-based steelmaker said.
The steelmaker added that the price spread between 61% Fe fines and 56.5% Fe fines was around 130-135 yuan ($18.02-$18.72) per tonne, while the spread between 61% Fe fines and 58% Fe fines was around 85-90 yuan ($11.79-12.48) per tonne.
Lower-grade fines also traded at narrower discount in the seaborne market.
A 190,000-tonne cargo of 56.5% Fe low-grade fines with June 15-24 laycan was traded at the June average of a 62% Fe index with a discount of 11.75% on Tuesday.
The traded discount was narrower than the miner’s fixed monthly discount at 13.75% in May.
Fastmarkets’ iron ore indices 62% Fe fines, cfr Qingdao:$99.96 per tonne, down $0.11 per tonne 62% Fe low-alumina fines, cfr Qingdao:$99.17 per tonne, down $0.04 per tonne 58% Fe fines high-grade premium, cfr Qingdao:$88.14 per tonne, up $0.53 per tonne 65% Fe Brazil-origin fines, cfr Qingdao:$110.98 per tonne, up $0.13 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:789 yuan per wet metric tonne (implied 62% Fe China Port Price:$100.89 per dry tonne), up by 3 yuan per wmt 67.5% Fe pellet feed premium, cfr Qingdao:$0.80 per tonne, unchanged 67.5% Fe pellet feed, cfr Qingdao:$116.18 per tonne, down $0.10 per tonne 65% Fe concentrate premium, cfr Qingdao:$(5.50) per tonne, unchanged 65% Fe concentrate, cfr Qingdao:$105.00 per tonne, down $0.10 per tonne
Trades/offers/bids heard in the market BHP, Beijing Iron Ore Trading Center (COREX), 90,000 tonnes of 60.5% Fe Jimblebar fines, traded at the June average of two 62% Fe iron ore fines indices with a discount of $6.60 per tonne, laycan June 21-30
COREX, 170,000 tonnes of 62% Fe Pilbara Blend fines, offered at the June average of a 62% Fe iron ore fines index with a premium of $1.30 per tonne, laycan May 25-June 3
BHP, globalORE, 80,000 tonnes of 62% Fe Mining Area C fines, traded at $96.90 per tonne CFR Qingdao, laycan June 21-30
Rio Tinto, tender, 170,000 tonnes of 60.8% Fe Pilbara Blend fines, traded at $95.71 per tonne CFR Qingdao (61% Fe base), laycan July 5-14
GlobalORE, 290,000 tonnes of 65% Fe Carajas fines, offered at the June average of Fastmarkets’ 65% Fe index with a discount of $1.60 per tonne, bill of lading dated April 29
Vale, tender, 70,000 tonnes of 51.94% Fe lump ore non screened Guaiba, bill of lading dated May 16
FMG, tender, 190.000 tonnes of 56.7% Fe Super Special fines, traded at June average of a 62% Fe iron ore fines index with a discount of 11.75%, laycan June 15-24
Spot market, 170,000 tonnes of 62% Fe Pilbara Blend fines, traded at the July average 62% Fe iron ore fines index with a premium of $2.15 per tonne to Dandong port in northeast China, laycan June 7-16
Market participant indications Fastmarkets’ index for iron ore 62% Fe fines CFR Qingdao Pilbara Blend fines: $96.51-100.22 per tonne Brazilian Blend fines: $98.16-99.76 per tonne Newman fines: $97.02-97.92 per tonne Jimblebar fines: $92.50-93.42 per tonne
Fastmarkets’ index for iron ore 65% Fe Brazil-origin fines CFR Qingdao Iron Ore Carajas: $110.50-112.00 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: $(2.00)-(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 763-775 yuan per wmt in Shandong province and in the ports of Tangshan city on Tuesday, compared with 762-775 yuan per wmt on Monday.
The latest range is equivalent to about $97-99 per tonne in the seaborne market.
Dalian Commodity Exchange The most-traded September iron ore futures contract on the exchange closed at 725 yuan per tonne on Tuesday, up by 2.50 yuan per tonne from Monday’s closing price.