Import iron ore prices in China see slight uptrend

During the week ending February 8, prices of imported iron ore in the Chinese domestic market have trended up slightly, as traders are now more confident on the prospects for the future market. Imported iron ore prices have in general risen by RMB 10/mt week on week, with prices of iron ore from Australia, Brazil and India all trending up. Meanwhile, domestic iron ore concentrate prices in both Liaoning and Tangshan have indicated a stable trend.
 
At present, Indian fine ores of 63.5 percent grade are offered at $173.3/mt at Qingdao port, while Australian lump ores of 62 percent or 63 percent grade are priced at $170.1/mt. Meanwhile, the quotation of 66 percent iron ore concentrate in Tangshan is $154.2/mt, and the price of the same product stands at the level of $128.8/mt in Beipiao, both excluding VAT.
 
Traders' optimism as regards the short-term market prospects has contributed to supporting iron ore prices in China in the past week. Although some mills' inventory levels are not sufficiently high, they remain cautious about concluding purchases, and so domestic demand for iron ore has not fully revived, making it difficult to see strong increases in iron ore prices. Iron ore prices in China may trend sideways in the coming week.