During the week ending April 13, average prices of import iron ore for China have indicated significant declines, while transaction activity for import iron ore has been at low-to-medium levels. At the same time, traders’ offers of domestic production iron ore have also indicated downward movement, with transaction activity for domestic production ore at low-to-medium levels.
At present, Indian fine ores of 63.5 percent grade are offered at $78.5/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $94/mt and prices of the same material are at $75/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, the significant declines in Chinese domestic finished steel prices have continued to impact both local and import iron ore prices in the Chinese market. Meanwhile, steelmakers in China have come under pressure to reduce their production costs and so have cut their purchase prices for iron ore, exerting a negative impact on iron ore prices. Considering that finished steel prices in the domestic market are foreseen to continue their soft trend, it is thought that iron ore prices in China will likely move down further in the coming week.
Imported iron ore prices
| Product Name | Name of Port | Iron Content % | Place of origin | Truck loaded price (RMB/mt) | Price($/mt) | Weekly Change (RMB/mt) |
| Newman iron ore lump | Qingdao | 63/63.5 | Australia | 605-615 | 88-89 | ↓60 |
| Brazil fines | 63,5 | Brazil | 555-565 | 80-82 | ↓60 | |
| Yandi fines | 58 / 59 | Australia | 455-465 | 66-67 | ↓60 | |
| PB fines | 61,5 | Australia | 545-555 | 79-80 | ↓60 | |
| PB iron ore lump | 62 | Australia | 585-595 | 85-86 | ↓60 | |
| Indian fine ore | 63,5 | India | 535-545 | 78-79 | ↓50 | |
| Indian fine ore | 63 | India | 525-535 | 76-78 | ↓50 | |
| Indian fine ore | 62 | India | 505-515 | 73-75 | ↓50 | |
| Indian fine ore | 61 | India | 485-495 | 70-72 | ↓50 | |
| Indian fine ore | 59 | India | 325-335 | 47-49 | ↓50 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
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 | 550 | 81 | ↓80 |
| damp base (iron content: 66%) | Beipiao | 440 | 64 | ↓90 |
17 percent VAT is excluded in all prices and all prices are ex-warehouse.
$1 = RMB 6.89