During the week ending December 24, prices of imported iron ore in China have seen an overall rising trend, while transaction activity for imported iron ore has been slacker compared to the previous week, though it remains at low levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and Liaoning Province have indicated a downtrend, while overall demand for domestic production iron ore has been sluggish.
At present, Indian fine ores of 63.5 percent grade are offered at $49.4/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $46.3/mt and prices of the same material are at $44.8/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, international iron ore miners intentionally decreased shipment of iron ore, resulting in supply shortage at ports and price rises in imported iron ore. However, steelmakers have been unwilling to accept the price rise, thus transaction activity became slacker than previous week. At the same time, Chinese domestic production iron ore bore pressures and indicated a downtrend. Since bearish trend in international commodities will unlikely change, it is expected that iron ore prices will likely move on a stable trend or see a slight downtrend in the coming week.
Domestic iron ore prices in local Chinese market
| Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 300 | ↓10 | 47 |
| damp base (iron content: 66%) | Beipiao | 290 | ↓30 | 45 |
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 | 305-315 | 47-49 | ↑10 |
| Brazil fines | 63,5 | Brazil | 345-360 | 54-56 | ↑10 | |
| Yandi fines | 58 / 59 | Australia | 285-295 | 44-46 | ↑10 | |
| PB Fines | 62 | Australia | 335-345 | 52-54 | ↑10 | |
| PB iron ore lump | 61.5 | Australia | 300-310 | 47-48 | ↑10 | |
| Indian fine ore | 63.5 | India | 315-325 | 49-51 | ↑10 | |
| Indian fine ore | 63 | India | 305-315 | 47-49 | ↑10 | |
| Indian fine ore | 62 | India | 290-300 | 45-47 | ↑10 | |
| Indian fine ore | 61 | India | 275-285 | 43-44 | ↑10 | |
| Indian fine ore | 59 | India | 245-255 | 38-40 | ↑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 6.48