Import iron ore prices for China indicate downward movement

During the week ending August 18, prices of import iron ore from Australia and Brazil in China have indicated a downward trend, while transaction activity for import iron ore has been slacker than in the previous week and is now at low levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and Liaoning Province have moved on a slight uptrend, with transaction activity for domestic production ore at decent levels.

 

At present, Indian fine ores of 63.5 percent grade are offered at $58.7/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $70.8/mt and prices of the same material are at $57.2/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 have stepped up their purchases of domestic production sintered iron ore to reduce their own needs to sinter against the backdrop of environmental protection. Meanwhile, they have lowered their purchase prices for import iron ore from Australia and Brazil to reduce their production costs. In the futures market, iron ore futures prices have indicated downward corrections. Moreover, the iron ore market continues to be characterized by oversupply. It is thought that iron ore prices in the Chinese market will likely 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 6.63