SteelOrbis Shanghai
According to the latest statistics, Chinese
iron ore production and imports for July saw a certain decline compared with June, while maintaining a high growth rate year on year.
In July, Chinese
iron ore production totaled 50.2517 million metric tons, up 12.66 million metric tons or 34 percent year on year, but down 4.19 million metric tons or 8 percent month on month. The total
production from January to July reached 296 million metric tons, up 77.17 million metric tons or 35 percent year on year.
Iron ore imports in July reached 24.73 million metric tons, down 4 million metric tons or 13.92 percent month on month. The cumulative imports from January to July increased 21.7 percent to 186 million metric tons year on year.
July and August are the dead season for steel demand in
China, leading to the decrease in the demand on
iron ore. However, based on the decrease range of domestic ore and imported ore, the reliance of Chinese steel industry on imported ore is diminishing.
Domestic ore prices moved steadily up throughout the week especially in northeastern regions, but the imported ore prices are still in a weak trend.
On August 10, the price of 66 percent damp base
iron ore in Tangshan was RMB 480/mt ($60.2) excluding tax, and that in Beipiao Liaoning Province was up RMB 10/mt ($1.3) at RMB 410/mt ($51.4) excluding tax. The price quotation of 63.5 percent
India fine ore was down RMB 5/mt ($0.6) to RMB 635/mt ($79.7) at Tianjin Port, and the price at Qingdao Port was up RMB 5/mt ($0.6) to RMB 620/mt ($77.8). The price of Australian Hamersley 63 and 64 percent fine ore at Beilun Port was at RMB 620/mt ($77.8), neutral week on week.
Iron ore prices have seen a slight rise in northeastern regions recently. Currently, the ex-factory price of 66 percent damp base fine ore is RMB 405-415/mt ($51-52) excluding tax, up RMB 5-10/mt compared with the previous week, with good commercial activity. Earlier, steel mills in northeastern regions did not purchase much
iron ore under the pressure of costs with the unclear domestic steel market trend. Therefore their inventories reduced to a relatively low level. However, since the domestic steel market has become stable recently, steel mills also began to make up their
iron ore inventory.
The fine
iron ore market in Tangshan moved flat through the week, with strong prices and better commercial activity. The mines seem reluctant to sell their products at the current price level.
Influenced by the hike in
freight, the quotation of imported ore increased, but the actual deal prices did not see a rise due to sluggish commercial activity, leading the market to remain in a weak and stable trend.
By the end of last week, the total
iron ore inventory in
China's twenty-three major ports was 40.50 million metric tons, sharply down 1.03 million metric tons compared with the previous week.
Overall, after experiencing a decline in July, the current Chinese
iron ore market is in a weak and stable trend, which, in short term, is likely to see a slight fluctuation, but no major decrease.
The overall sharp fall in steel market beginning from mid-June ended up with the
iron ore market gaining stability. There is a certain decrease range for only some types of steel products in some markets. Fluctuating at the bottom in August, Chinese steel market will see a new round of increase after the demand recovers both at home and abroad.