Seaborne iron ore prices softened as shipments gradually returned to normal levels, alleviating supply concerns. The Kallanish KORE 62% Fe index fell by $0.84/tonne to $102.63/dry metric tonne cfr Qingdao, while the KORE 65% Fe index retreated by $0.77/t to $115.64/dmt cfr. Similarly, the KORE 58% Fe index decreased by $0.40/t to $89.72/dmt cfr.
On the Dalian Commodity Exchange, May 2025 iron ore contracts dropped by CNY 7/t ($0.96/t) to CNY 777.5/t, while on the Singapore Exchange, May 62% Fe futures settled $1.24/t lower at $100.99/t and 65% Fe futures declined by $1.36/t to $114.18/t. Tangshan billet prices also fell by CNY 10/t to CNY 3,030/t.
Market sentiment faced additional pressure from reports of tightened restrictions on non-VAT steel exports by the Chinese government, leading to uncertainty and risk-averse trading. Nevertheless, sustained profitability in Chinese steel mills and increased hot metal production are expected to provide support for iron ore prices.
