During the week ending July 21, prices of import iron ore in China from Australia and Brazil have indicated an overall downward trend, while transaction activity for import iron ore has been slacker than in the previous week and is now at low levels. At the same time, traders' offers of domestic production iron ore in Tangshan have continued their rising trend, while traders' offers in Liaoning Province have remained stable, with transaction activity for domestic production ore currently at decent levels.
At present, Indian fine ores of 63.5 percent grade are offered at $56.9/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $64.4/mt and prices of the same material are at $52.4/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the tables below.
During the given week, the declines seen in domestic finished steel prices have exerted a negative impact on iron ore prices, while Chinese steelmakers have reduced their purchases of imported iron ore. Meanwhile, steelmakers have chosen instead to purchase domestic production iron ore in order to replenish their inventories. The rainy season has recently come to an end in the middle and lower reaches of Yangtze river to be replaced by hot weather conditions, and at the same time northern China has seen heavy rainfall, which will negatively affect the finished steel and iron ore markets in China. It is thought that iron ore prices in the Chinese market will likely see further declines in the coming week.
Domestic iron ore prices in local Chinese market
Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 430 | 64 | ↑10 |
damp base (iron content: 66%) | Beipiao | 350 | 52 | ↔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 | 535-545 | 80-82 | ↓30 |
Brazil fines | 63,5 | Brazil | 415-425 | 62-64 | ↓20 | |
Yandi fines | 58 / 59 | Australia | 355-365 | 53-55 | ↓20 | |
PB Fines | 62 | Australia | 525-535 | 79-80 | ↓30 | |
PB iron ore lump | 61.5 | Australia | 415-425 | 62-64 | ↓20 | |
Indian fine ore | 63.5 | India | 375-385 | 56-58 | ↔0 | |
Indian fine ore | 63 | India | 365-375 | 55-56 | ↔0 | |
Indian fine ore | 62 | India | 355-365 | 53-55 | ↔0 | |
Indian fine ore | 61 | India | 345-355 | 52-53 | ↔0 | |
Indian fine ore | 59 | India | 315-325 | 47-49 | ↔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 6.67