Inventory replenishment provides support for import iron ore prices for China

During the week ending January 7, prices of import iron ore in China have continued their upward trend, though some import iron ore prices have remained unchanged, while transaction activity for import iron ore has been better compared to the previous week, though still remaining at low levels. At the same time, traders’ offers of domestic production iron ore in Liaoning Province have indicated a slight rising trend, though prices in Tangshan have moved on a stable trend, while overall demand for domestic production iron ore has improved compared to the previous week.

 

At present, Indian fine ores of 63.5 percent grade are offered at $52.6/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $44.2/mt and prices of the same material are at $48.8/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.

After their previous increases, iron ore prices have shown signs of suspending their rising movement, with some import iron ore prices starting to move on stable trends. Steelmakers’ inventory replenishments have resulted in import iron ore purchase volumes. Meanwhile, steelmakers have also stepped up their purchases of domestic production iron ore, resulting in upticks in prices in Tangshan. 

Although steelmakers’ inventory replenishments will provide support for iron ore prices, sentiment among market participants has weakened. It is expected that iron ore prices in the Chinese market will move sideways in the coming week. 

 

 

 

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

 

 

 

The prices are deal prices in local market.                                          

 

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

$1 = RMB 6.59