During the week ending May 29, prices of imported iron ore in China have mostly indicated a stable trend, though with slight rises also seen in some prices, while transaction activity for imported iron ore has been at decent levels. At the same time, traders' offers of domestic production iron ore in Tangshan and Liaoning Province have followed a stable trend.
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 $74.2/mt and prices of the same material are at $59.7/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, iron ore futures prices have indicated a rebound, providing a certain degree of support for iron ore prices in spot market. However, as finished steel prices have softened, Chinese steelmakers have been unwilling to pay higher prices for iron ore, limiting the room for upward movement of iron ore prices. Meanwhile, iron ore deliveries from overseas miners have decreased, resulting in declines in iron ore inventory levels at China's ports. Thus, some traders have attempted to increase their iron ore offer prices slightly. It is thought that imported iron ore prices in the Chinese market will likely see a slight uptrend in the coming week.
Domestic iron ore prices in local Chinese market
Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 460 | 74 | 0 |
damp base (iron content: 66%) | Beipiao | 370 | 60 | 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 | 62 | Australia | 520-540 | 84-87 | 0 |
| Brazil fines | 63,5 | Brazil | 430-440 | 69-71 | ↑10 | |
| Yandi fines | 58 / 59 | Australia | 390-410 | 63-66 | ↑10 | |
| PB Fines | 61,5 | Australia | 420-440 | 68-71 | 0 | |
| PB iron ore lump | 62/63 | Australia | 610-630 | 98-102 | 0 | |
| Indian fine ore | 63.5 | India | 430-440 | 69-71 | 0 | |
| Indian fine ore | 63 | India | 420-440 | 68-71 | ↑10 | |
| Indian fine ore | 62 | India | 410-430 | 66-69 | ↑10 | |
| 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