Seaborne iron ore price up amid increased trading

Seaborne iron ore prices are on the rise due to increased trading activity and stable market fundamentals, highlighting steady demand and opportunities for growth while emphasizing the importance of monitoring market trends to manage risks effectively.

Seaborne iron ore prices strengthen as futures and physical market activity grows

Seaborne iron ore prices edged higher on Wednesday June 4 amid increased trading of mid-grade fines in both the primary and secondary markets. Sources told Fastmarkets about this trend.

Key drivers for seaborne iron ore prices

The most-traded September iron ore futures contract on the Dalian Commodity Exchange (DCE) fluctuated over the day. It closed at 704.50 yuan ($98) per tonne, up by 1.3% from the previous closing price of 695.50 yuan per tonne.

By 6:14pm, the most-traded July contract on the Singapore Exchange (SGX) was $95.65 per tonne. This was up by $1.35 per tonne compared with the previous settlement price of $94.30 per tonne.

Some market participants said the iron ore derivatives market slightly rebounded on Wednesday. This was mainly because the continuous decline came to an end, without further downside movement drivers.

“It’s a technical rebound in the derivatives market after days of decline. But overall fundamental structure for iron ore has stayed largely stable,” one Beijing-based mill source told Fastmarkets.

Some sources said that iron ore stocks at major Chinese ports have declined for four consecutive weeks as of Friday May 30. They reached around 145 million tonnes. This partially eased market concerns on iron ore oversupply.

“But iron ore shipments from major miners remained robust, especially for a few Australia miners with the financial year ending in June 2025,” a second Beijing-based mill source said.

A few sources noted that trading of major steel products in the physical market increased on Wednesday due to previous price declines. This partially supported the positive sentiment in the iron ore and steel derivatives market.

In the seaborne iron ore market, a few late June-loaded 62% Fe Pilbara Blend fines were traded at June average 62% Fe iron ore fines index. They had a small premium in the secondary market. Meanwhile, only July-loaded 61% Fe Pilbara Blend fines are being offered and traded since mid-May in the primary market.

“Now it’s on a transition period from 62% Fe to 61% Fe Pilbara Blend fines. Sources are trying to figure out and settle the price gap between them,” a Shanghai-based trader said. “The prices [of 61% Pilbara Blend fines in the seaborne market] could only be stabilized when the early July-loaded cargoes arrived at China’s portside market.”

The same source added that mills are treating 61% Fe Pilbara Blend fines as a new iron ore brand. They can have a clear price settlement scheme after it is put into sintering production process with other mid-grade fines.

A cargo of 170,000 tonnes of 62% Fe Pilbara Blend fines was traded between traders. The deal was made at June average of a 62% Fe iron ore fines index. It included a premium of $0.20 per tonne, laycan June 19-28. Several sources told Fastmarkets about this on Wednesday.

“Speculative buying interest for 62% Fe Pilbara Blend fines increased due to their limited supply in the market in the short term,” a mill source from South China said.

Buying interest for high-silica Brazilian fines remained good due to their decent cost-effectiveness and reselling margins at China’s portside market. This led to a narrowed discount over a 62% Fe iron ore fines index.

“Most steel mills still prefer low-grade iron ore. They have reduced the consumption of high-grade iron ore with a high price,” a second Shanghai-based trader told Fastmarkets. “This makes it difficult for traders to take high-grade ore in the seaborne market. They aim to get reselling margins.”

The seaborne iron ore lump premium also inched higher following the rebound in the iron ore fines sector.

Concentrates and pellet feed

Several market participants said the discount for major high-grade imported iron ore concentrates and pellet feed from Ukraine and Chile had marginally improved. This occurred due to increased speculative buying interest recently.

A Shanghai-based trader held 66% Fe concentrates from Canada and Chile unchanged with a discount to a 65% Fe iron ore fines index. However, no deal was concluded this week.

But China’s domestic iron ore concentrates prices continued to decline in northern China. This happened due to relatively sufficient supply, which partially capped demand for imported high-grade concentrates.

“The 66% Fe iron ore concentrates from Hebei province is around 920 yuan per tonne delivery to the mill,” a Hangzhou-based trader told Fastmarkets on Wednesday.

A Hebei-based mill said the consumption ratio of high-grade pellet feed and pellet has been maintained at a relatively low level recently. There is little buying interest for imported pellet feed.

Recent trades, offers and bids in the iron ore market

Vale, Beijing Iron Ore Trading Center (COREX), 170,000 tonnes of 65% Fe Carajas fines, traded at $105.20 per tonne, laycan June 6-15

Vale, globalORE, 170,000 tonnes of 62% Fe Brazilian Blend fines, traded at $95.90 per tonne CFR Qingdao, laycan July 7-16

Rio Tinto, globalORE, 170,000 tonnes of 61% Fe Pilbara Blend fines, traded at $92.45 per tonne (61% Fe basis) CFR Qingdao, laycan July 10-19

BHP, globalORE, 90,000 tonnes of 62% Fe Mining Area C fines, traded at $93.60 per tonne CFR Qingdao (62% Fe basis), laycan June 26-July 5

BHP, Beijing Iron Ore Trading Center (Corex), 80,000 tonnes of 61.7% Fe Newman Blend fines, traded at $93.20 per tonne CFR Qingdao, laycan June 26-July 5

BHP, tender, 90,000 tonnes of 62.2% Fe Newman Blend Lumps, traded at July average of Fastmarkets’ 62% Fe index. It included another 62% Fe index on an FOB Australia basis plus a lump premium of $0.1618 per dry metric tonne unit, laycan June 26-July 5

Market participant indications

Fastmarkets’ index for iron ore 67.5% Fe Pellet Feed Premium, cfr Qingdao
Minas Rio BFPF Pellet Feed: $(3.00)-(4.70) per tonne
Atacama CNN Pellet Feed: $(2.50)-(3.00) per tonne
Romeral Pellet Feed: $(2.00) per tonne
Kaunis Pellet Feed: $0.00-1.00 per tonne
Metinvest 68% Pellet Feed: $(3.00)-(4.00) per tonne
Ferrexpo 67%: $(0.50) per tonne

Fastmarkets’ index for iron ore 65% Fe Concentrate Premium, cfr Qingdao
Citic Pacific Concentrate: $(5.50) per tonne
Karara Concentrate: $(6.89) per tonne
SIMEC Concentrate: $(1.00)-0.50 per tonne
Metinvest SevGok Concentrate: $(4.70)-(5.50) per tonne

Port prices

Pilbara Blend fines were traded at 731-748 yuan per wmt in Shandong province and the ports of Tangshan city on Wednesday. This was compared with 726-750 yuan per wmt on Tuesday.

The latest range is equivalent to about $93-96 per tonne in the seaborne market.

Dalian Commodity Exchange

The most-traded September iron ore futures contract on the exchange closed at 704.50 yuan per tonne on Wednesday. This was up by 9 yuan from the previous closing price.

What to read next
The Chinese steel market is expected to remain reliant on export-led growth for the rest of 2025, amid poor domestic consumption and a lack of investor confidence in the property sector, delegates were told at the Singapore International Iron Ore Forum on Wednesday May 28.
The following prices were published at 4:24pm London time, instead of by the scheduled time of 4pm London time: MB-IRO-0002 Pig iron export, fob main port Black Sea, CIS, $/tonneMB-IRO-0014 Pig iron import, cfr Italy, $/tonneMB-FE-0004 Hot-briquetted iron, cfr Italian ports, $/tonne These prices are a part of the Fastmarkets Steel Raw Materials Physical Prices package. For more […]
The recent doubling of Section 232 tariffs to 50%, announced by President Trump, has introduced significant uncertainty to the US steel market, with traders reporting disruptions to imports, paused domestic mill quotes and concerns over potential price increases amid modest demand. Industry participants are now assessing how the additional costs will be absorbed across the supply chain.
South Africa’s newly approved Critical Minerals and Metals Strategy and the draft of the 2025 Mineral Resources Development Bill (MRDB) have drawn significant attention from global market participants, particularly manganese and chrome buyers in China.
Mexico’s strategic role in automotive nearshoring is fueling demand for recycled aluminium, with investment in scrap-intensive sectors boosting its non-ferrous secondary markets. Despite tariff uncertainties, USMCA compliance and EV production growth continue to attract global manufacturers.
Goldcorp founder Rob McEwen is back in the spotlight with a bold bet on copper in Argentina. The $2.5 billion Los Azules project, set to become Argentina’s first major copper mine in over 30 years, is reshaping the country’s mining industry while raising sustainability standards. Positioned as a key player in addressing a global copper shortage, the project highlights innovation, persistence and a commitment to meeting the growing demand from global electrification.