Import iron ore prices for China move up

During the past week ending August 3, prices of import iron ore for China have indicated an overall upward trend, while transaction activity for import iron ore in the past week has been at decent levels. At the same time, traders’ offers of domestic production iron ore have also increased in Liaoning Province and Tangshan, with transaction activity for domestic production ore at low-to-medium levels.

At present, Indian fine ores of 63.5 percent grade are offered at $72.3/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $93/mt and prices of the same material are at $83/mt in Beipiao, Liaoning, both including VAT. Prices of domestic production and imported iron ore in China are presented in the following table.

During the given week, due to environmental inspections concerning low-grade construction steel production, the whole supply chain in the Chinese steel industry has been affected, resulting in significant increases in iron ore futures prices on Dalian Commodity Exchange, in turn positively impacting import iron ore prices. However, following the rises seen in import iron ore prices, buyers have been more cautious about concluding purchases. As for the coming week, increased pressure from iron ore supply will likely exert a negative impact on import iron ore prices. Although blast furnaces’ capacity utilization rates are at high levels, the iron ore inventories of domestic steelmakers are also on the high side. Accordingly, steelmakers’ purchases of iron ore are expected to be limited in the coming period. It is thought that import iron ore prices are unlikey to indicate sharp rises in the week ahead.

Imported iron ore prices

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  

 17 percent VAT is excluded in all prices and all prices are ex-warehouse. 

$1 = RMB 6.72