During the week ending March 9, prices of import iron ore for China have indicated a declining trend, while transaction activity for import iron ore has been at low-to-medium 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 medium levels.
At present, Indian fine ores of 63.5 percent grade are offered at $90/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $116/mt and prices of the same material are at $95/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, Chinese steelmakers’ purchases of import iron ore have slackened, contributing to the softening of prices of import ore. Instead, steelmakers in China have continued to focus more on purchases of domestic production iron ore, providing a certain degree of support for prices of domestic ore. Meanwhile, Chinese domestic prices of finished steel and semi-finished steel have indicated a soft trend, also exerting a negative impact on iron ore prices in the spot market. It is thought that iron ore prices in the Chinese market will likely move down slightly in the coming week.
Imported iron ore prices in local Chinese market
| Product Name | Name of Port | Iron Content % | Place of origin | Truck loaded price (RMB/mt) | Price($/mt) | Weekly Change (RMB/mt) |
| Newman iron ore lump | Qingdao | 63/63.5 | Australia | 705-715 | 102-103 | ↓20 |
| Brazil fines | 63,5 | Brazil | 645-655 | 93-95 | ↓20 | |
| Yandi fines | 58 / 59 | Australia | 555-565 | 80-82 | ↓20 | |
| PB fines | 61,5 | Australia | 655-665 | 95-96 | ↓20 | |
| PB iron ore lump | 62 | Australia | 685-695 | 99-101 | ↓20 | |
| Indian fine ore | 63,5 | India | 615-625 | 89-90 | ↓20 | |
| Indian fine ore | 63 | India | 605-615 | 87-89 | ↓20 | |
| Indian fine ore | 62 | India | 585-595 | 85-86 | ↓20 | |
| Indian fine ore | 61 | India | 565-575 | 82-83 | ↓20 | |
| Indian fine ore | 59 | India | 425-435 | 61-63 | ↓20 |
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 | 685 | 99 | ↑5 |
| damp base (iron content: 66%) | Beipiao | 560 | 81 | 0 |
17 percent VAT is excluded in all prices and all prices are ex-warehouse.
$1 = RMB 6.91