Imported iron ore market rose slightly in last week

Time:Mon, 29 Oct 2012 22:36:58 +0800

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Imported iron ore market rose slightly in last week with RMB 10-20 uplift in spot price at Chinese ports and USD 1-2 in foreign quotes. Hesitation among players were dominated the market confidence while various method about price trend under unsettled billet prices, oscillating rebar futures blocked steelmakers from purchasing more iron ore.

Billet demands in Tangshan area reached 95,000 tonnes in past week while only 80,000 tonnes new production entered market, helping traders reducing their stockpile while holding up the billet price.

WISCO announced its Q3 reports, showing a net profit of RMB 193 million in Q3, down 53.31% YoY while gaining RMB 328 million in the first three quarters of 2012, down 80% YoY.

For tenders of imported iron ore, 10 tenders had valid compared with 18 in previous week with a total volume of 991,600 tonnes, decreased 1.09 million tonnes. Platforms were still active by which 50% of tenders done- one for CBMX and four for GlobalORE. In the view of miners, despite Vale showed more aggressive attitude than Rio and BHP, the decreased volume reflected the less confidence for future market, avoiding to hit the price more by more tenders.

On swap market, transaction prices rose to USD 115-117/tonne level with quite a few transactions done on Nov and Dec contracts.

The price of imported iron ore in next week would remain in slight oscillation with more possibility of dropping than rising.

Sales Prices of Imported Ores at main China Ports

Price (RMB/WMT) Tax included	Port Tianjin		Port Qingdao		Port Lanshan/Rizhao		Port Beilun
Price (RMB/WMT) Tax included	Price	Change from last week	Price	Change from last week	Price	Change from last week	Price	Change from last week
Indian fines 63.5%	890	+30	880	+20	880	+20	870	+30
Indian fines 62%	840	+30	830	+20	830	+20	-	-
Indian fines 59%	750	+30	740	+20	750	+20	-	-
Indian fines 58%			730	+10	730	+10	-	-
Brazilian iron ore concentrate 66%	-	-	1010	+10	990	+10	940	+30
Brazilian fines 64.5%	910	+30	890	+10	890	+10	860	+20
Brazilian Pellet 65%	-	-	1140	+10	-	-	-	-
Australian lump 62%	980	+30	960	+10	970	+10	940	+30
MAC fines 61.5%	-	-	860	+20	-	-	-	-
PB fines 61.5%	870	+30	860	+20	860	+20	840	+30
Yandi fines 58.5%	770	+20	770	+20	770	+20	-	-
Robe River fines 57%	760	+20	760	+20	760	+20	-	-

Iron Ore in Stock of Major China Ports (Update: Oct 26, 2012)

Port	Cargo In Stock (tonne)	QTY change	Port Evacuation	Stock Capacity (tonne)	Stock by Regions			Remark
Port	Cargo In Stock (tonne)	(tonne)	-	Stock Capacity (tonne)	Australia	Brazil	India	Remark
Dalian	4,100,000	-	40,000	6,000,000	1,700,000	1,900,000	*	No congestion
Jingtang	9,300,000	-	80,000	10,000,000	3,300,000	2,600,000	1,250,000	Port congestion: 2-3 days; 70% of long-term contracts.
Tianjin	6,700,000	-100,000	120,000	9,000,000	3,750,000	1,200,000	550,000	Port congestion: 2-3 days; 60% of long-term contracts.
Qingdao	16,000,000	-700,000	230,000	17,000,000	5,600,000	4,600,000	1,400,000	No congestion; 60% of long-term contracts.
Rizhao	13,900,000	-200,000	300,000	18,000,000	5,600,000	5,300,000	1,700,000	No congestion; 35% of long-term contracts.
Lanshan	4,200,000	-200,000	26,000	6,000,000	1,900,000	1,200,000	1,100,000	Port congestion: 2-3 days; 20% of long-term contracts.
Lianyungang	5,200,000	-200,000	70,000	8,000,000	2,300,000	1,400,000	1,300,000	No congestion; 40% of long-term contracts.
Beilun	2,000,000	-400,000	100,000	5,500,000	850,000	650,000	350,000	No congestion; 65% of long-term contracts.
Yantai	1,180,000	30,000	*	3,000,000	600,000	500,000	*	No congestion
Caofeidian	13,500,000	-	250,000	14,000,000	5,700,000	3,100,000	2,500,000	No congestion; 75% of long-term contracts.
Shanghai	1,900,000	0	40,000	2,100,000	1,000,000	500,000	100,000	No congestion;
Nantong	1,600,000	-	60,000	2,700,000	800,000	400,000	200,000	No congestion; 80% of long-term contracts.
Qinhuangdao	900,000	-	20,000	3,300,000	550,000	250,000	150,000	No congestion
Zhanjiang	1,500,000	-100,000	150,000	4,000,000	800,000	500,000	100,000	No congestion; 80% of long-term contracts.
Majishan	2,100,000	-	*	5,000,000	*	*	*	No congestion
Baoshan	1,800,000	-	*	2,300,000	*	*	*	No congestion
Yingkou	1,900,000	-	*	5,000,000	1,050,000	650,000	*	No congestion; 90% of long-term contracts.
Zhenjiang	2,500,000	-	*	3,000,000	1,450,000	350,000	400,000	No congestion; 50% of long-term contracts.
Fangcheng	3,000,000	-	55,000	10,000,000	1,000,000	800,000	450,000	No congestion; 70% of long-term contracts.
Dandong	400,000	-	*	800,000	300,000	100,000	*	No congestion
Jiangyin	1,400,000	-	*	-	*	*	*	No congestion
Guangzhou	100,000	-	10,000	800,000	-	-	150,000	No congestion
Fuzhou	550,000	-	*	-	*	*	*	No congestion
Xiamen	650,000	-	20,000	1,000,000	*	*	*	No congestion
Nanjing	900,000	-	*	2,000,000	300,000	100,000	*	No congestion
Longkou	250,000	-	20,000	-	200,000	*	50,000	No congestion
Zhangjiagang	550,000	-	*	-	300,000	100,000	100,000	No congestion
Changzhou	300,000	-	10,000	-	100,000	50,000	*	No congestion
Suzhou	650,000	-	*	1,800,000	*	*	*	No congestion
Quanzhou	300,000	-	10,000	-	*	*	*	No congestion
Qinzhou	200,000	-	*	-	*	*	*	No congestion
Taicang	1,800,000	-	60,000	-	750,000	300,000	100,000	No congestion
Jinzhou	200,000	-	10,000	-	*	*	*	No congestion
Shenzhen	200,000	-	10,000	-	*	*	*	No congestion
Total	102,130,000	-1,870,000	-	-	-	-	-	*