Chinese iron ore market stable after holiday

SteelOrbis Shanghai Over the past week, the Chinese iron ore market has been quite stable on the whole, with good commercial activity and a slight increase in some regions. On October 12, the price of 66-percent damp base iron ore in Tangshan remained unchanged from last week at RMB 515/mt ($65.1) excluding tax, while that in Beipiao city of Liaoning Province increased RMB 5/mt ($0.6) to RMB 425/mt ($53.7) excluding tax. The price quotation for 63.5-percent ex-India fine ore is at RMB 640/mt ($80.9) at Tianjin Port, while the price at Qingdao Port is at RMB 630/mt ($79.6). The price of ex-Hamersley, Australia 63 and 64-percent fine ore at Beilun Port is at RMB 630/mt ($79.6) - these prices are equal to the levels of the previous week. When coming into October, mines in northeastern China reduce their production due to the cold weather. Traditionally, steel mills will increase purchases from this time, so as to stock more iron ore for the coming winter. Influenced by this, iron ore prices in the local market saw a slight rise. The market in northern China continued in strong fashion. Moreover, the rebound in semi finished steel prices after the holiday also boosted the demand for iron ore. The market in Tangshan saw brisk commercial activity. All the mines are very regarding the future. Some steel mills tried to lower their purchase prices, but failed because of the sharp decline in their stock. As regards imported ore, prices were stable in recent days. Remarkably, freight costs in the international iron ore market declined continuously – evidence of the reduction in the quantity of imported iron ore. All in all, the strong trend of the Chinese iron ore market is unlikely to change in the short term.