During the week ending October 8, prices of imported iron ore in China have mostly indicated a declining trend, while transaction activity for imported iron ore has been slacker than in the previous week, though remaining at decent levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and Liaoning Province have moved on a stable trend, while overall demand for domestic production iron ore has improved and is also at decent levels.
At present, Indian fine ores of 63.5 percent grade are offered at $70/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $69.2/mt and prices of the same material are at $56.6/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, transaction activities for iron ore imports have been negatively impacted due to the National Day Holiday (October 1-7). No positive developments have been heard in the finished steel industry and so finished steel prices are expected to continue their declining trend, which will negatively influence iron ore prices. However, finished steel production has remained at high levels, providing a certain degree of support for iron ore prices, which are thus unlikely to indicate sharp declines. It is thought that iron ore prices in the Chinese domestic market will likely move sideways in the coming week.
Domestic iron ore prices in local Chinese market
| Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 440 | 69 | 0 |
| damp base (iron content: 66%) | Beipiao | 360 | 57 | 0 |
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 | 560-580 | 89-93 | ↓10 |
| Brazil fines | 63,5 | Brazil | 435-455 | 69-72 | ↓10 | |
| Yandi fines | 58 / 59 | Australia | 390-400 | 61-63 | ↓10 | |
| PB Fines | 62 | Australia | 450-470 | 71-74 | ↓10 | |
| PB iron ore lump | 61.5 | Australia | 425-435 | 67-69 | ↓10 | |
| Indian fine ore | 63.5 | India | 430-440 | 68-69 | ↓10 | |
| Indian fine ore | 63 | India | 420-430 | 66-68 | ↓10 | |
| Indian fine ore | 62 | India | 400-420 | 63-66 | ↓10 | |
| Indian fine ore | 61 | India | 390-400 | 61-63 | ↓10 | |
| Indian fine ore | 59 | India | 370-390 | 58-61 | 0 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.35