Issue 02, 2024 - This week's editorial: Chinese iron ore market remains under pressure

Seaborne iron ore prices fell again on Friday, after a week of continued downward corrections. China reduced iron ore imports in December 2023, but overall during last year it reached a new annual record level. The outlook for 2024 is nevertheless subdued in terms of import volumes and the pricing sentiment at the moment is weakening.

The Kallanish KORE 62% Fe index and the KORE 65% Fe index lost $4.43/t and $4.29/t respectively on Friday 12 January to $132.56/dry metric tonne cfr Qingdao and $144.02/dmt cfr. The KORE 58% Fe index meanwhile slumped by $6.16/t to $118.19/dmt cfr. 170,000 tonnes of Carajas fines were sold at $143.4/t with delivery in February.

On the Dalian Commodity Exchange (DCE), the most-traded May 2024 iron ore contract declined by CNY 2/t ($0.27/t) to CNY 963.5/t ($134.46/t). On the Singapore Exchange, February 62%Fe futures and 65% Fe futures settled $4.62/t and $4.55/t lower respectively at $129.69/t and $142.39/t.The same contract for 58% Fe futures was down by $4.57/t at $118.34/t. Tangshanbillet meanwhile stayed at CNY 3,600/t.

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