Decent activity levels in iron ore market in China

Thursday, 05 May 2016 11:04:55 (GMT+3)   |   Shanghai
During the week ending May 5, prices of import iron ore in China have moved on a stable trend, while transaction activity for import iron ore has improved compared to the previous week and is currently at good levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and Liaoning Province have also moved on a stable trend, with transaction activity for domestic production ore at decent levels.
 
At present, Indian fine ores of 63.5 percent grade are offered at $72.8/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $69.7/mt and prices of the same material are at $58.8/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, domestic prices of semi-finished steel and finished steel have indicated corrections, exerting a negative impact on iron ore prices, whereas steelmakers’ iron ore purchases have been at decent levels, providing support for iron ore prices. The result of these opposing pressures is that prices in the iron ore market have moved sideways. It it thought that iron ore prices will likely fluctuate within a limited range 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

450

69

0

damp base (iron content: 66%)

Beipiao

380

59

0

 

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

585-595

90-92

0

Brazil fines

63,5

Brazil

455-465

70-72

0

Yandi fines

58 / 59

Australia

415-425

64-66

0

PB Fines

62

Australia

575-585

89-90

0

PB iron ore lump

61.5

Australia

455-465

70-72

0

Indian fine ore

63.5

India

465-475

72-73

0

Indian fine ore

63

India

455-465

70-72

0

Indian fine ore

62

India

445-455

69-70

0

Indian fine ore

61

India

435-445

67-69

0

Indian fine ore

59

India

405-415

63-64

0

 
The prices are deal prices in local market.                                          

17 percent VAT is included in all prices and all prices are ex-warehouse.
 
$1 = RMB 6.50
 

 


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