During the week ending May 12, prices of import iron ore in China have indicated an overall downtrend, while transaction activity for import iron ore has slackened compared to the previous week and is currently at low levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and Liaoning Province have also softened, with transaction activity for domestic production ore at low levels.
At present, Indian fine ores of 63.5 percent grade are offered at $67.7/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $67.7/mt and prices of the same material are at $56.9/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, amid significant declines in prices of finished steel and semi-finished steel, bearish sentiment prevails in the iron ore market. Chinese steelmakers are currently reluctant to purchase iron ore, and this has exerted further downward pressure on iron ore prices. Most market participants in the ferrous metal markets in China are currently maintaining a wait-and-see stance. It is thought that iron ore prices in the Chinese market will likely edge down further in the coming week.
Domestic iron ore prices in local Chinese market
| Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 440 | 68 | ↓10 |
| damp base (iron content: 66%) | Beipiao | 370 | 57 | ↓10 |
17 percent VAT is excluded in all prices and all prices are ex-warehouse.
Imported iron ore prices in local Chinese market
| Product Name | Name of Port | Iron Content % | Place of origin | Truck loaded price (RMB/mt) | Price($/mt) | Weekly Change (RMB/mt) |
| PB iron ore lump | Qingdao | 63/63.5 | Australia | 535-545 | 83-84 | ↓50 |
| Brazil fines | 63,5 | Brazil | 415-425 | 64-66 | ↓40 | |
| Yandi fines | 58 / 59 | Australia | 375-385 | 58-60 | ↓40 | |
| PB Fines | 62 | Australia | 525-555 | 81-86 | ↓50 | |
| PB iron ore lump | 61.5 | Australia | 415-425 | 64-66 | ↓40 | |
| Indian fine ore | 63.5 | India | 435-445 | 67-69 | ↓30 | |
| Indian fine ore | 63 | India | 425-435 | 66-67 | ↓30 | |
| Indian fine ore | 62 | India | 415-425 | 64-66 | ↓30 | |
| Indian fine ore | 61 | India | 405-415 | 63-64 | ↓30 | |
| Indian fine ore | 59 | India | 375-385 | 58-60 | ↓30 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.51