Weekly analysis about iron ore market

Prices for imported iron ore started to slide in this week. Prices for Indian iron ore fall from USD 198 MT in this Monday to USD 192 MT until this Friday, almost about USD 5/MT decreasing. At the same time, the international market turned to go down, with the prices USD 193/MT in the major Chinese ports.

On the other hand , spot prices for imported iron ore decreased by 20-30 RMB/MT. Prices for Indian iron ore 63.5% are between 1360-1380 RMB/MT, and 1400-1430RMB/MT for Brazilian iron ore 65%. For Australian iron ore , prices lay on 1300-1320 RMB/MT, and parts of local traders tried to attract buyers by lowering the prices. International offers for Brazilian iron ore 65% are USD 199-201/MT CIF, and USD 190-191/MT for Australian iron ore lump.

News from most steel factories reflected that it is hard for them to accept this high prices. So transactions run rather unpleasant in this week, and it's sort of stimulated the present prices. Chinese steel association declared that the high standard prices are mainly controlled by the Big three giant. And prices for iron ore which directly imported from traders by steel producers are higher than the average prices level, sometimes even high than the prices settled by the local iron ore traders who buy in first and sell out then. It is proved that there are some loss during the importing process.

In this week, International iron ore prices negotiation system which last for 40 year expired, instead the big three giant will make the prices by their own index system.

Prediction: Authorities predicts that prices in the second season will keep up. Prices for CVRD Carla gus grade 66% tend to reach USD199/DMT,with the increasing 15.9% when compared with the last season's USD172/DMT. For Rio tinto 62% BP fines,the FOB prices reach at USD170/MT , almost go up by 24% than that of season one.

Near days , international iron ore sea transportation turn to down.   Sea freight from Brazil to China is about 18.18 dollars/tonne, falling by 0.07 dollars/tons than that of last trading day. And sea freight from West Australia to China reach at 6.558 dollars/tonne ,rising by 0.016 dollars a ton than last day.