During the week ending June 2, prices of import iron ore in China have indicated an overall downtrend, while transaction activity for import iron ore has been slacker than in the previous week, but is still at medium levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and in Liaoning Province have moved on a stable trend, with transaction activity for domestic production ore at low levels.
At present, Indian fine ores of 63.5 percent grade are offered at $54.8/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $62.4/mt and prices of the same material are at $53.3/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, since finished steel prices have indicated a downward trend, Chinese steelmakers have lowered their production capacity utilization, causing demand for iron ore to slacken. Meanwhile, iron ore traders have mostly been maintaining a wait-and-see stance, resulting in fewer transactions for iron ore, thereby exerting downward pressure on import iron ore prices. Inventory levels of iron ore at Chinese ports have risen slightly, which will likely exert a negative impact on iron ore prices. It is thought that iron ore prices in the Chinese market will soften in the coming week.
Domestic iron ore prices in local Chinese market
| Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 410 | 63 | 0 |
| damp base (iron content: 66%) | Beipiao | 350 | 54 | 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 | 485-495 | 74-76 | ↓10 |
| Brazil fines | 63,5 | Brazil | 365-375 | 56-57 | ↓10 | |
| Yandi fines | 58 / 59 | Australia | 325-335 | 50-51 | ↓10 | |
| PB Fines | 62 | Australia | 475-485 | 73-74 | ↓10 | |
| PB iron ore lump | 61.5 | Australia | 365-375 | 56-57 | ↓10 | |
| Indian fine ore | 63.5 | India | 355-365 | 54-56 | ↓10 | |
| Indian fine ore | 63 | India | 345-355 | 53-54 | ↓10 | |
| Indian fine ore | 62 | India | 335-345 | 51-53 | ↓10 | |
| Indian fine ore | 61 | India | 325-335 | 50-51 | ↓10 | |
| Indian fine ore | 59 | India | 295-305 | 45-47 | ↓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 6.58