During the week ending May 11, average prices of import iron ore for China have indicated a downward trend, while transaction activity for import iron ore has been at medium levels. At the same time, traders' offers of domestic production iron ore have indicated a slight uptrend, with transaction activity for domestic production ore at medium levels.
At present, Indian fine ores of 63.5 percent grade are offered at $67.5/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $86/mt and prices of the same material are at $71/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, the Chinese ferrous metal futures market declined sharply starting from last Thursday, exerting a negative impact on the trend of iron ore prices in the spot market. Meanwhile, inventory levels of iron ore at Chinese ports have increased to historic highs, putting strong downward pressure on imported iron ore prices in the market. However, in the latter part of the week, steel producers have stepped up their purchases, positively impacting iron ore prices. It is expected that iron ore prices in China will likely edge up slightly with some limited fluctuations in the coming week.
Imported iron ore prices
Product Name | Name of Port | Iron Content % | Place of origin | Truck loaded price (RMB/mt) | Price($/mt) | Weekly Change (RMB/mt) |
Newman iron ore lump | Qingdao | 63/63.5 | Australia | 585-595 | 85-86 | ↓40 |
Brazil fines | 63,5 | Brazil | 450-460 | 65-67 | ↓55 | |
Yandi fines | 58 / 59 | Australia | 400-410 | 58-59 | ↓15 | |
PB fines | 61,5 | Australia | 465-475 | 67-69 | ↓50 | |
PB iron ore lump | 62 | Australia | 570-580 | 83-84 | ↓40 | |
Indian fine ore | 63,5 | India | 460-470 | 67-68 | ↓40 | |
Indian fine ore | 63 | India | 450-460 | 65-67 | ↓40 | |
Indian fine ore | 62 | India | 430-440 | 62-64 | ↓40 | |
Indian fine ore | 61 | India | 410-420 | 59-61 | ↓40 | |
Indian fine ore | 59 | India | 280-290 | 41-42 | ↓30 |
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 | 505 | 73 | ↑55 |
damp base (iron content: 66%) | Beipiao | 420 | 61 | 0 |
17 percent VAT is excluded in all prices and all prices are ex-warehouse.
$1 = RMB 6.90