Haihao Group’s commitment to monitoring raw material market trends and sharing insights with clients

At Haihao Group, we understand the critical importance of staying updated with market trends, particularly in the raw materials sector, to better serve our clients and ensure optimal operational decisions. A recent iron ore market report from June 29 to July 5 highlights key movements and provides a detailed overview of the current trends in the industry.

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Weekly Market Overview

From July 1 to July 5, the price of imported iron ore experienced an increase compared to the previous week. This rise in prices was accompanied by a slight decrease in iron ore arrivals at ports. Despite the decline in port arrivals, there was an increase in shipments from major suppliers. Australian iron ore shipments saw a slight rise, while shipments from Brazil showed a significant increase. Consequently, iron ore port inventories continued to grow, nearing 150 million tons.

Specific Price Changes

On July 5, the spot price of 62% grade Australian fines at Qingdao Port was recorded at 846 yuan per wet ton, reflecting a 2.17% increase from July 1. Similarly, the price for 65% grade Brazilian fines at the same port rose by 1.52%, reaching 998 yuan per wet ton. Domestic iron ore prices also witnessed a modest increase. For instance, the price of 66% grade iron concentrate in Tangshan was 1,055 yuan per ton on July 5, up by 2.83% from July 1.

PIPING PRODUCTS

The prices of imported iron ore saw the following changes on July 5:

62% grade iron ore increased to $110.50 per ton, a 3.56% rise from July 1.

65% grade iron ore reached $126.75 per ton, up by 3.55%.

58% grade iron ore was priced at $93.60 per ton, marking a 3.65% increase.

Global Shipping and Futures Market

Globally, the Baltic Dry Index (BDI) dropped to 1,966 points on July 5, decreasing by 84 points. In the futures market, the main iron ore contract I2409 closed at 849.5 yuan per ton, up by 19 yuan.

Supply and Inventory Dynamics

From June 24 to June 30, the total iron ore arrival at 47 Chinese ports was 25.979 million tons, a slight decrease of 24,000 tons week-on-week. In contrast, shipments from Australia and Brazil increased to 30.922 million tons during the same period. Specifically, Australia’s shipment to China was 18.283 million tons, while Brazil’s shipment surged by 2.451 million tons. As of July 5, port inventories stood at 149.8866 million tons, with Australian iron ore inventory increasing and Brazilian iron ore inventory decreasing.

Demand Side Analysis

Steel inventory levels increased to 12.8952 million tons, up by 177,600 tons from the previous week. The operational rate of blast furnaces in 247 surveyed steel plants dropped to 82.81%, a slight decline compared to the previous week.

Production Data

According to the China Iron and Steel Association (CISA), key steel enterprises produced 21.6765 million tons of steel in late June, with daily production averaging 2.1676 million tons, a decrease of 0.80% from the previous period. Similarly, daily pig iron production decreased by 1.17%, while daily steel production showed a notable increase due to specific inventory adjustments at the end of the month.

Haihao Group is dedicated to keeping abreast of the latest trends in the raw materials market, particularly iron ore, to provide timely and valuable insights to our clients. By monitoring these market dynamics closely, we ensure that our clients are well-informed and can make strategic decisions that align with current market conditions. Our commitment to transparency and proactive communication is a cornerstone of our customer service philosophy, reinforcing our role as a trusted partner in the industry.