During the week ending June 30, prices of import iron ore in China have indicated an upward 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 in Liaoning Province have declined, with transaction activity for domestic production ore at low levels.
At present, Indian fine ores of 63.5 percent grade are offered at $51.3/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $60.3/mt and prices of the same material are at $49.8/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, the slight rebound in finished steel prices in China has provided a certain degree of support for iron ore prices, with international miners increasing their iron ore sales prices for future delivery. Meanwhile, traders have also increased their offer prices for imported iron ore in the spot market. However, finished steel prices are unlikely to continue their rising trend, which means there will be a lack of support for the upward movement of iron ore prices. It is expected that iron ore prices in the Chinese market will move sideways in the coming week.
Domestic iron ore prices in local Chinese market
Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 400 | 60 | ↓10 |
damp base (iron content: 66%) | Beipiao | 330 | 50 | ↓10 |
17 percent VAT is excluded in all prices and all prices are ex-warehouse.
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) |
| PB iron ore lump | Qingdao | 63/63.5 | Australia | 535-545 | 80-82 | ↑30 |
| Brazil fines | 63,5 | Brazil | 405-415 | 61-62 | ↑30 | |
| Yandi fines | 58 / 59 | Australia | 345-355 | 52-53 | ↑10 | |
| PB Fines | 62 | Australia | 525-535 | 79-80 | ↑30 | |
| PB iron ore lump | 61.5 | Australia | 405-415 | 61-62 | ↑30 | |
| Indian fine ore | 63.5 | India | 335-345 | 50-52 | ↑10 | |
| Indian fine ore | 63 | India | 325-335 | 49-50 | ↑10 | |
| Indian fine ore | 62 | India | 315-325 | 47-49 | ↑10 | |
| Indian fine ore | 61 | India | 305-315 | 46-47 | ↑10 | |
| Indian fine ore | 59 | India | 275-285 | 41-43 | ↑10 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.65