Import iron ore prices for China edge up further

During the week ending October 20, prices of import iron ore for China have continued to move on a slight uptrend, while transaction activity for import 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, with transaction activity for domestic production ore at medium levels.

 

At present, Indian fine ores of 63.5 percent grade are offered at $63.8/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $72.7/mt and prices of the same material are at $59.3/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’ demand for iron ore has been good as their production has increased, and this has provided support for iron ore prices. However, since iron ore supplies are sufficient, room for upward movement appears to be limited. Meanwhile, finished steel supply in China has increased, which will exert negative pressure on prices of finished steel and iron ore in the coming period. On the other hand, increases in prices of coking coal and coke will provide support for iron ore prices. It is thought that iron ore prices in the Chinese market will move sideways in the coming week. 

 

17 percent VAT is excluded in all prices and all prices are ex-warehouse.

 

 

The prices are deal prices in local market.                                          

17 percent VAT is included in all prices and all prices are ex-warehouse.

 

$1 = RMB 6.74