During the week ending August 27, prices of imported iron ore in China have indicated a declining trend, while transaction activity for imported iron ore has been better than in the previous week and is at decent levels. At the same time, traders' offers of domestic production iron ore in Tangshan and Liaoning Province have moved on a stable trend, while overall demand for domestic production iron ore has been sluggish.
At present, Indian fine ores of 63.5 percent grade are offered at $65.6/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $70.3/mt and prices of the same material are at $57.8/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, declines in finished steel prices in the domestic market have exerted a negative impact on iron ore prices. Meanwhile, the decreases in international commodity prices have hit confidence among market participants. Steelmakers have been seeking to increase their inventory levels of raw materials and so transaction activity for iron ore has risen. At present, sentiment in the finished steel market has been impacted by uncertainty surrounding the Chinese economy, and this has weakened support for iron ore prices. As for the coming week, it is thought that iron ore prices in China will likely move sideways or edge up slightly due to positive expectations regarding the traditional peak season for business in September and October.
Domestic iron ore prices in local Chinese market
Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 450 | 70 | 0 |
damp base (iron content: 66%) | Beipiao | 370 | 58 | 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 | 540-560 | 84-87 | ↓10 |
| Brazil fines | 63,5 | Brazil | 420-440 | 66-67 | ↓10 | |
| Yandi fines | 58 / 59 | Australia | 380-400 | 59-62 | ↓10 | |
| PB Fines | 62 | Australia | 450-470 | 70-73 | ↓10 | |
| PB iron ore lump | 61.5 | Australia | 410-420 | 64-66 | ↓10 | |
| Indian fine ore | 63.5 | India | 400-420 | 62-66 | ↓20 | |
| Indian fine ore | 63 | India | 400-420 | 62-66 | ↓20 | |
| Indian fine ore | 62 | India | 380-400 | 59-62 | ↓20 | |
| Indian fine ore | 61 | India | 370-390 | 58-61 | ↓20 | |
| Indian fine ore | 59 | India | 350-370 | 55-58 | ↓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 6.41