During the week ending January 23, transaction activity in the Chinese iron ore market has been slack, while transaction prices for imported iron ore and domestic production iron ore in the Chinese market have indicated downward movement.
At present, Indian fine ores of 63.5 percent grade are offered at $145.4/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $135.6/mt, and prices of the same material are at $111.1/mt in Beipiao, both excluding VAT. Prices of domestic production and imported iron ore in China can be viewed in the SteelOrbis price reports section.
In the given week, weakened inquiries at Chinese ports and significantly decreased order volumes have been exerting further downward pressure on prices in the Chinese iron ore spot market. On the other hand, the prices of imported iron ore in the futures market have witnessed a bigger decrease than in the spot market. Traders state that trading activities have currently almost come to a halt as most mills have suspended new purchases due to the approach of the Spring Festival holiday (starts end of January). In the last trading week before the Spring Festival holiday, it is thought that the Chinese iron ore market will likely continue its downtrend.