During the week ending November 26, prices of imported iron ore in China have indicated an overall downtrend, while transaction activity for imported iron ore is at low levels, slackening further compared to the previous week. At the same time, traders' offers of domestic production iron ore in Tangshan and Liaoning Province have softened further, while overall demand for domestic production iron ore has been sluggish.
At present, Indian fine ores of 63.5 percent grade are offered at $54/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $51.6/mt and prices of the same material are at $54.8/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, Chinese steelmakers have gradually cut their production activities, weakening demand for iron ore, which has resulted in declines in iron ore prices. Meanwhile, heavy snowfall in northern China has also negatively affected transaction activities and prices of iron ore. In addition, steelmakers have been reluctant to purchase domestic production iron ore, thereby increasing the downward pressure on prices of domestic iron ore. The sharp falls in temperatures in China are expected to exacerbate the oversupply situation in the iron ore market against the backdrop of the offseason in the finished steel market. It is thought that iron ore prices in the Chinese market will likely edge down further in the coming week.
Domestic iron ore prices in local Chinese market
| Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 330 | 52 | ↓60 |
| damp base (iron content: 66%) | Beipiao | 350 | 55 | ↓10 |
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 | 375-395 | 59-62 | ↓15 |
| Brazil fines | 63,5 | Brazil | 340-350 | 53-55 | ↓15 | |
| Yandi fines | 58 / 59 | Australia | 300-310 | 47-49 | ↓15 | |
| PB Fines | 62 | Australia | 365-375 | 57-59 | ↓15 | |
| PB iron ore lump | 61.5 | Australia | 325-335 | 51-52 | ↓15 | |
| Indian fine ore | 63.5 | India | 340-350 | 53-55 | ↓15 | |
| Indian fine ore | 63 | India | 330-340 | 52-53 | ↓15 | |
| Indian fine ore | 62 | India | 315-325 | 49-51 | ↓15 | |
| Indian fine ore | 61 | India | 300-310 | 47-49 | ↓15 | |
| Indian fine ore | 59 | India | 270-275 | 42-43 | ↓15 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.39