During the week ending June 12, prices of imported iron ore in China have remained stable or have just indicated minor downticks, while at the same time traders' offers of domestic production iron ore in the Tangshan district are unchanged, with traders' offers of domestic ore in the Liaoning softening slightly. Transaction activity for both imported and domestic iron ore has shown an improvement compared to the previous week.
At present, Indian fine ores of 63.5 percent grade are offered at $111.1/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $111.1/mt and prices of the same material are at $93.1/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.
During the given week, Chinese steelmakers have increased their purchases of iron ore, providing a certain amount of support for prices of the raw material. However, although inventory of imported iron ore at Chinese ports has indicated some declines, it is still at high levels and still exerts a negative impact on iron ore prices. As a result, iron ore prices have in general been relatively stable in the past week. Market sources state that Chinese steelmakers are seeking to conclude purchases of iron ore at around $90/mt. Meanwhile, prices of finished steel have continued to soften. It is thought that iron ore prices in China will mostly move sideways in the coming week.