During the week ending June 15, prices of import iron ore for China have mostly indicated a downward trend, while transaction activity for import iron ore has been at low levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and Liaoning Province have remained stable, 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 $61.7/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $83/mt and prices of the same material are at $71/mt in Beipiao, Liaoning, both including VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, iron ore prices have moved on a soft trend, while steelmakers have been concluding purchases of ore only in line with their needs. Steelmakers’ inventories of iron ore have been at low levels, resulting in rises in iron ore inventories at Chinese ports. As for the coming week, while inventory levels at ports may increase, the capacity utilization rates of blast furnaces are at relatively high levels, which will provide some support for iron ore prices. It is thought that iron ore prices in the Chinese market will edge down slightly in the coming week.
Imported iron ore prices
| Product Name | Name of Port | Iron Content % | Place of origin | Truck loaded price (RMB/mt) | Price($/mt) | Weekly Change (RMB/mt) |
| Newman iron ore lump | Qingdao | 63/63.5 | Australia | 590-600 | 87-88 | ↓15 |
| Brazil fines | 63,5 | Brazil | 405-415 | 59-61 | ↓10 | |
| Yandi fines | 58 / 59 | Australia | 372-382 | 55-56 | ↓8 | |
| PB fines | 61,5 | Australia | 420-430 | 62-63 | ↓10 | |
| PB iron ore lump | 62 | Australia | 575-585 | 84-86 | ↓10 | |
| Indian fine ore | 63,5 | India | 420-430 | 62-63 | ↓10 | |
| Indian fine ore | 63 | India | 410-420 | 60-62 | ↓10 | |
| Indian fine ore | 62 | India | 390-400 | 57-59 | ↓10 | |
| Indian fine ore | 61 | India | 370-380 | 54-56 | ↓10 | |
| Indian fine ore | 59 | India | 285-295 | 42-43 | 0 |
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 | 490 | 72 | 0 |
| damp base (iron content: 66%) | Beipiao | 420 | 62 | 0 |
17 percent VAT is excluded in all prices and all prices are ex-warehouse.
$1 = RMB 6.80