During the week ending April 6, average prices of import iron ore for China have softened slightly, while transaction activity for import iron ore has been at low-to-medium levels. At the same time, traders’ offers of domestic production iron ore have also indicated a soft trend, 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 $85.8/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $107/mt and prices of the same material are at $90/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, the significant declines in Chinese domestic finished steel prices in late March have continued to impact import iron ore prices and at the same time caused domestic iron ore prices to be affected by the slacker demand from steelmakers. Meanwhile, the rising iron ore inventories at Chinese ports have also negatively influenced prices of imported iron ore. Nevertheless, with the domestic ferrous metal futures market lately indicating a rebound, it is thought that iron ore prices in China will likely move sideways in the coming week.
Imported iron ore prices in local Chinese market
| Product Name | Name of Port | Iron Content % | Place of origin | Truck loaded price (RMB/mt) | Price($/mt) | Weekly Change (RMB/mt) |
| Newman iron ore lump | Qingdao | 63/63.5 | Australia | 665-675 | 96-98 | ↓5 |
| Brazil fines | 63,5 | Brazil | 615-625 | 89-91 | ↓5 | |
| Yandi fines | 58 / 59 | Australia | 515-525 | 75-76 | 0 | |
| PB fines | 61,5 | Australia | 605-615 | 88-89 | ↓10 | |
| PB iron ore lump | 62 | Australia | 645-655 | 94-95 | ↓10 | |
| Indian fine ore | 63,5 | India | 585-595 | 85-86 | ↓10 | |
| Indian fine ore | 63 | India | 575-585 | 83-85 | ↓10 | |
| Indian fine ore | 62 | India | 555-565 | 80-82 | ↓10 | |
| Indian fine ore | 61 | India | 535-545 | 78-79 | ↓10 | |
| Indian fine ore | 59 | India | 375-385 | 54-56 | ↓5 |
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
| 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 | 630 | 91 | ↓10 |
| damp base (iron content: 66%) | Beipiao | 535 | 78 | ↓15 |
17 percent VAT is excluded in all prices and all prices are ex-warehouse.
$1 = RMB 6.89