The iron ore markets are showing price stabilization, with market participants not expecting significant increases in the medium term. According to data from Kallanish, the price of Chinese iron ore with 62% Fe content rose by $3 per ton from April 7 to April 20, reaching $99 per ton CFR Qingdao. Futures contracts on the Singapore exchange for May delivery were also trading at $99 per ton, while September futures on the Dalian exchange were offered at $98 per ton. This indicates that market participants do not anticipate further price increases in the medium term.
This is reported by Business • Media
Decline in Metal Product Prices and Increase in Ore Imports
Meanwhile, in China, from March 26 to April 18, the price of steel decreased by $18 per ton, to $403 per ton EXW Tian Shan. There has been an increase in iron ore import shipments: in March, shipments from the Australian port of Port Hedland rose by 1.15% year-on-year and by 36.73% month-on-month, totaling 50.66 million tons. In the context of falling prices for finished steel products and rising imports of iron ore from Australia, an increase in its market value signifies enhanced government support for Chinese metallurgy. This allows steel mills to offset declining margins and stimulates further growth in steel production.
Reduction in Inventories and Support for Production
At the same time, in April, there has been a reduction in inventories of flat and long products, particularly hot-rolled coils and rebar, both at traders’ warehouses and at steel mills. This contributes to rising demand, although it does not affect price dynamics. Premier Li Qiang emphasized the need for timely and targeted measures to guide market expectations on April 17. Meanwhile, the price of high-quality iron ore Fe 65 in Brazil remained unchanged from April 11 to April 18 at $110 per ton CFR in China. Since the beginning of the month, producer offers have decreased by $5 per ton. According to reports, in January-March 2025, Ukraine reduced iron ore exports by 5.7% year-on-year to 8.49 million tons. In monetary terms, this figure decreased by 20.3% to $687.79 million. The largest consumer of Ukrainian iron ore is traditionally China. The president of the association “Ukrmetallurgprom,” Oleksandr Kalenkov, reported serious risks for Ukraine’s mining and metallurgy complex due to delays in the refund of the export value-added tax for the company Ferrexpo. According to him, the lack of tax refunds has already contributed to a reduction in production and export volumes for this company, which is one of the key players in the domestic metallurgy sector.