Iron ore prices indicate downtrend in China

During the week ending May 17, prices of imported iron ore - from India, Brazil and Australia - in the Chinese market have showed a decline of RMB 20-30/mt ($3.2-4.7/mt) week on week. Meanwhile, the prices of domestic production iron ore have continued their downtrend, with prices in Beipiao and Tangshan dropping by RMB 20-30/mt ($3.2-4.7/mt) week on week.
 
At present, Indian fine ores of 63.5 percent grade are offered at $159.8/mt at Qingdao port, while Australian lump ores of 62 percent or 63 percent grade priced at $166.1/mt. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan are at $139.2/mt, and the price of the similar product stands at $120.3/mt in Beipiao, both excluding VAT. Domestic production and imported iron ore prices in China can be viewed in the SteelOrbis price reports section.
 
Although the international miners are trying to keep iron ore prices stable by virtue of their dominant position, they have been obliged to cut their offer prices due to the dynamics of supply and demand. Meanwhile, the Chinese steel mills have started to keep lower ironore inventories due to the softening of prices. Overall, it is expected that iron ore prices in China will continue to trend down in the coming period.