During the week ending January 28, prices of import lump ore in China have indicated a slight rising trend, while other import iron ore prices have softened. Transaction activity for import iron ore has been at low levels. At the same time, traders' offers of domestic production iron ore in Liaoning Province and Tangshan have moved on a stable trend, while overall demand for domestic production iron ore has been at decent levels.
At present, Indian fine ores of 63.5 percent grade are offered at $50.4/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $48.9/mt and prices of the same material are at $44.3/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the tables below.
During the given week, Chinese steelmakers have reduced their production activities due to slack demand for finished steel, which has resulted in lower demand for iron ore and contributed to the soft trend seen in some prices of imported iron ore. Meanwhile, finished steel and iron ore futures prices have undergone corrections, exerting a negative impact on the iron ore spot market. With the approach of the Chinese New Year holiday (February 8-14), steelmakers' demand for iron ore will decline further, resulting in slacker transaction activity for iron ore. It is thought that iron ore prices in the Chinese market will likely indicate a slight downtrend in the coming week.
Domestic iron ore prices in local Chinese market
Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 320 | 49 | - |
damp base (iron content: 66%) | Beipiao | 290 | 44 | - |
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 | 385-400 | 59-61 | ↑10 |
| Brazil fines | 63,5 | Brazil | 305-315 | 46-48 | ↓10 | |
| Yandi fines | 58 / 59 | Australia | 285-295 | 43-45 | ↓10 | |
| PB Fines | 62 | Australia | 375-385 | 57-59 | ↑10 | |
| PB iron ore lump | 61.5 | Australia | 305-310 | 46-47 | ↓10 | |
| Indian fine ore | 63.5 | India | 325-335 | 49-51 | ↓10 | |
| Indian fine ore | 63 | India | 315-325 | 48-49 | ↓10 | |
| Indian fine ore | 62 | India | 300-310 | 46-47 | ↓10 | |
| Indian fine ore | 61 | India | 285-295 | 43-45 | ↓10 | |
| Indian fine ore | 59 | India | 255-265 | 39-40 | ↓10 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.58