During the week ending December 22, prices of import iron ore for China have indicated a slight downtrend, while transaction activity for import iron ore has been at low levels. At the same time, traders’ offer prices for domestic production iron ore in Tangshan and Liaoning Province have increased, with transaction activity for domestic production ore at medium levels.
At present, Indian fine ores of 63.5 percent grade are offered at $74/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $79.8/mt and prices of the same material are at $66.8/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, finished steel prices in China have indicated downward movement, contributing to the declining trend of import iron ore prices and low levels of transaction activity for iron ore. Meanwhile, steelmakers in China have reduced their purchases of import iron ore and increased their purchases of domestic iron ore to a certain extent, exerting a negative impact on import iron ore prices in the spot market. It is thought that import iron ore prices for China will likely continue to move down in the coming week amid bearish sentiment, while prices of domestic iron ore are expected to move sideways.
Domestic iron ore prices in local Chinese market
| Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 550 | 79 | ↑20 |
| damp base (iron content: 66%) | Beipiao | 460 | 66 | ↑20 |
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) |
| Newman iron ore lump | Qingdao | 63/63.5 | Australia | 665-675 | 96-97 | ↓10 |
| Brazil fines | 63,5 | Brazil | 625-635 | 90-91 | ↓10 | |
| Yandi fines | 58 / 59 | Australia | 535-545 | 77-78 | ↓10 | |
| PB fines | 61.5 | Australia | 625-635 | 90-91 | ↓10 | |
| PB iron ore lump | 62 | Australia | 655-665 | 94-96 | ↓10 | |
| Indian fine ore | 63.5 | India | 505-515 | 73-74 | ↓20 | |
| Indian fine ore | 63 | India | 495-505 | 71-73 | ↓20 | |
| Indian fine ore | 62 | India | 475-485 | 68-70 | ↓20 | |
| Indian fine ore | 61 | India | 455-465 | 65-67 | ↓20 | |
| Indian fine ore | 59 | India | 415-425 | 60-61 | ↓20 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.95