Iron ore weekly report (August 24 – August 30)

In the final week of August, imported iron ore prices showed an upward trend compared to the previous week. From a supply perspective, the volume of iron ore arriving at ports increased slightly. Australia’s iron ore shipments rose marginally, while Brazil’s shipments decreased. Despite a significant increase in port inventories compared to the previous week, the stock levels have remained above 150 million tons for several consecutive weeks. Blast furnace operating rates continued to decline slightly on a weekly basis.

ASME B16.9 Sch160 90 degree elbows

ASME B16.9 Sch160 90 degree elbows

Spot Market Overview

On August 30, according to relevant data, the port spot price for 62% grade Australian fines at Qingdao Port was 754 yuan per wet ton, a 4.0% increase from August 23. The price of 65% grade Carajás fines at Qingdao Port reached 884 yuan per wet ton, reflecting a 2.91% increase over the same period.

Domestic iron ore prices also saw an upward trend. On August 30, the ex-factory price for 66% grade iron concentrate in Tangshan, on a dry basis including tax, was 998 yuan per ton, an increase of 2.15% compared to August 23.

Imported Iron Ore Prices

Imported iron ore prices rose across the board:

62% grade iron ore was priced at $100.25 per ton on August 30, marking a 4.43% increase from August 23, with the average price between August 26 and August 30 being $100.63 per ton.

65% grade iron ore was priced at $113.95 per ton on August 30, up 3.88% from August 23, with an average price of $114.27 per ton for the same period.

58% grade iron ore was priced at $87.35 per ton on August 30, representing a 4.11% increase from August 23, with an average price of $88.01 per ton for the week.

Global Shipping Market

In the global shipping market, the Baltic Dry Index (BDI) rose to 1,814 points on August 30, up 52 points from the previous week.

Pipe fittings are packaged in plastic

Pipe fittings are packaged in plastic

Futures Market Performance

On August 30, the closing price for the iron ore main futures contract (I2409) was 748 yuan per ton, an increase of 22.5 yuan compared to the previous week.

Supply and Shipping Data

According to industry statistics, from August 19 to August 25, the total iron ore arrivals at 47 Chinese ports amounted to 26.71 million tons, an increase of 1.49 million tons week-on-week. At the six major northern ports, total arrivals were 12.54 million tons, down by 87,000 tons compared to the previous week. During the same period, the total iron ore shipments from Australia and Brazil reached 26.10 million tons, up by 286,000 tons week-on-week. Australia’s shipments totaled 18.48 million tons, a rise of 703,000 tons, with shipments to China reaching 15.51 million tons, up by 170,000 tons. Brazil’s shipments totaled 7.62 million tons, a decrease of 417,000 tons. The global iron ore shipment volume reached 32.21 million tons, an increase of 550,000 tons week-on-week.

Rio Tinto’s shipments to China decreased by 193,000 tons to 5.17 million tons.

BHP Billiton’s shipments to China increased by 288,000 tons to 4.59 million tons.

FMG’s shipments to China fell by 367,000 tons to 3.51 million tons.

Vale’s total shipments rose by 111,000 tons to 6.17 million tons.

Inventory Status

As of August 30, the total iron ore inventory at 45 Chinese ports was 153.72 million tons, up by 3.40 million tons compared to the previous week. The daily average unloading volume at ports was 2.99 million tons, down by 26,400 tons from the previous week. On the same day, the freight rate from Port Hedland, Australia to Qingdao, China was $11.07 per ton, unchanged from the previous week. The freight rate from Brazil to China increased by $0.67 to $26.30 per ton.

Demand Outlook

The social inventory of steel stood at 11.41 million tons, a decrease of 517,800 tons from the previous week and 1.20 million tons lower than the end of the previous month. According to a survey of 247 steel mills nationwide, the blast furnace operating rate was 76.41%, down by 1.06 percentage points week-on-week and 7.68 percentage points year-on-year.

Steel Production

According to the latest data from the China Iron and Steel Association (CISA), in mid-August 2024, key steel enterprises produced 19.93 million tons of steel, 18.23 million tons of pig iron, and 18.79 million tons of steel products. Daily steel production reached 1.9934 million tons, down by 0.50% week-on-week, a 10.01% decrease compared to the same period last year, and a 0.15% decrease compared to two years ago. Daily pig iron production was 1.8231 million tons, down by 1.02% week-on-week, 8.71% lower than last year, and 1.92% lower than two years ago. Daily steel product output was 1.8788 million tons, an increase of 2.16% week-on-week, but down by 12.82% year-on-year.

Based on these statistics, in mid-August, China’s daily crude steel production was estimated at 2.6919 million tons, down by 0.33% week-on-week, daily pig iron production was 2.2828 million tons, down by 0.78%, and daily steel product output was 3.8753 million tons, up by 1.04%.

Haihao Group pays attention to changes in raw material market conditions and actively shares them with customers so that you can make the best purchasing decisions. If you need supporting products for piping systems, please feel free to contact us.

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