During the week ending September 8, prices of import iron ore for China have indicated diverse trends, with some softening slightly, while Indian ore prices have risen slightly. Transaction activity for import iron ore has been better than in the previous week and is now at medium levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and Liaoning Province have moved on a stable, with transaction activity for domestic production ore at decent levels.
At present, Indian fine ores of 63.5 percent grade are offered at $58.6/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $75.1/mt and prices of the same material are at $60.8/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, some steelmakers have resumed production after the G20 Summit in Hangzhou, increasing the demand for iron ore and resulting in better activity in the market. However, ferrous metal futures prices have softened, exerting a negative impact on iron ore prices. Since demand for finished steel will improve in the coming period, iron ore prices could gain some support. It is thought that iron ore prices in the Chinese market will move sideways in the week ahead.
Domestic iron ore prices in local Chinese market
| Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 500 | 75 | 0 |
| damp base (iron content: 66%) | Beipiao | 400 | 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 | 63/63.5 | Australia | 545-555 | 82-84 | 0 |
| Brazil fines | 63,5 | Brazil | 425-435 | 64-66 | ↓10 | |
| Yandi fines | 58 / 59 | Australia | 355-365 | 54-55 | ↑10 | |
| PB Fines | 62 | Australia | 525-535 | 79-81 | ↓10 | |
| PB iron ore lump | 61.5 | Australia | 425-435 | 64-66 | 0 | |
| Indian fine ore | 63.5 | India | 385-395 | 58-60 | ↑20 | |
| Indian fine ore | 63 | India | 375-385 | 57-58 | ↑20 | |
| Indian fine ore | 62 | India | 365-375 | 55-57 | ↑20 | |
| Indian fine ore | 61 | India | 355-365 | 54-55 | ↑20 | |
| Indian fine ore | 59 | India | 325-335 | 49-51 | ↑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 6.66