During the week ending July 2, prices of imported iron ore in China have continued to move on a downtrend, while overall transaction activity for imported iron ore have been lower than previous week and below decent level. At the same time, traders' offers of domestic production iron ore in Tangshan have followed a stable trend, though prices have seen a slight rising trend in Liaoning Province, while overall demand for domestic production iron ore has been very sluggish.
At present, Indian fine ores of 63.5 percent grade are offered at $71/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $71/mt and prices of the same material are at $59.7/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the tables below.
During the given week, the ongoing decreases in domestic finished steel prices have sharply reduced steelmakers' profitability and so steelmakers have been trying to lower their purchase prices for iron ore. In order to achieve this aim, the steel producers have reduced their purchases of iron ore for the time being. The slight rise in iron ore prices in Liaoning Province has been due to declining supply of domestic production iron ore.
However, the decreases in iron ore prices have been smaller than those seen in finished steel prices, mainly due to the power of iron ore suppliers to decide prices by controlling supply. It is expected that iron ore prices in the Chinese market will continue their downtrend in the coming week due to the sluggishness of the finished steel market.
Domestic iron ore prices in local Chinese market
Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 440 | 71 | 0 |
damp base (iron content: 66%) | Beipiao | 370 | 60 | ↑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 | 62 | Australia | 510-530 | 82-85 | ↓10 |
| Brazil fines | 63,5 | Brazil | 450-460 | 73-74 | ↓10 | |
| Yandi fines | 58 / 59 | Australia | 400-420 | 65-68 | ↓10 | |
| PB Fines | 61,5 | Australia | 430-450 | 69-73 | ↓10 | |
| PB iron ore lump | 62/63 | Australia | 600-620 | 97-100 | ↓10 | |
| Indian fine ore | 63.5 | India | 430-440 | 69-71 | ↓10 | |
| Indian fine ore | 63 | India | 420-440 | 68-71 | ↓10 | |
| Indian fine ore | 62 | India | 420-440 | 68-71 | 0 | |
| Indian fine ore | 61 | India | 390-410 | 63-66 | ↓10 | |
| Indian fine ore | 59 | India | 360-380 | 58-61 | ↓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 6.20