During the week ending May 4, average prices of import iron ore for China have indicated a slight uptrend, while transaction activity for import iron ore has been at medium levels. At the same time, traders’ offers of domestic production iron ore have also risen slightly, with transaction activity for domestic production ore at low-to-medium levels.
At present, Indian fine ores of 63.5 percent grade are offered at $73.3/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $77/mt and prices of the same material are at $71/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, announcements concerning steel production restrictions for the One Belt One Road Forum in Beijing in mid-May and the shutdown of all substandard steel production in China created expectations of a short-term boost for steel prices and also that a knock-on impact would be felt in terms of iron ore prices, causing buyers to increase their replenishment of iron ore inventories. As for the coming week, it is expected that iron ore prices in China will likely move down amid increasing inventories.
Imported iron ore prices
| Product Name | Name of Port | Iron Content % | Place of origin | Truck loaded price (RMB/mt) | Price($/mt) | Weekly Change (RMB/mt) |
| Newman iron ore lump | Qingdao | 63/63.5 | Australia | 625-635 | 91-92 | ↑30 |
| Brazil fines | 63,5 | Brazil | 505-515 | 73-75 | ↑10 | |
| Yandi fines | 58 / 59 | Australia | 415-425 | 60-62 | 0 | |
| PB fines | 61,5 | Australia | 515-525 | 75-76 | ↑20 | |
| PB iron ore lump | 62 | Australia | 610-620 | 88-90 | ↑35 | |
| Indian fine ore | 63,5 | India | 500-510 | 72-74 | ↑15 | |
| Indian fine ore | 63 | India | 490-500 | 71-72 | ↑15 | |
| Indian fine ore | 62 | India | 470-480 | 68-70 | ↑15 | |
| Indian fine ore | 61 | India | 450-460 | 65-67 | ↑15 | |
| Indian fine ore | 59 | India | 310-320 | 45-46 | ↑15 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
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 | 450 | 65 | ↑20 |
| damp base (iron content: 66%) | Beipiao | 420 | 61 | ↑40 |
17 percent VAT is excluded in all prices and all prices are ex-warehouse.
$1 = RMB 6.89