During the week ending April 30, prices of imported iron ore in China have indicated a significant rebound, while transaction activity for imported iron ore has slackened compared to the previous week, though remaining at decent levels. At the same time, traders' offers of domestic production iron ore in Tangshan and Liaoning Province have followed a declining trend.
At present, Indian fine ores of 63.5 percent grade are offered at $69.4/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $72.6/mt and prices of the same material are at $59.1/mt in Beipiao, Liaoning, both excluding VAT.
The international mining giants have issued plans to slow down investments in their expansions, boosting sentiment in the iron ore market and contributing to the rebound seen in the iron ore futures market. Compared to imported iron ore, domestic production iron ore has lost its competitiveness and so prices of domestic ore have softened in the past week. Chinese steelmakers have been cautious about purchasing iron ore in the past week, negatively affecting transaction activity. Currently, traders and steelmakers are quite optimistic on the prospects for the market performance in May, which will likely provide support for the further upward movement of import iron ore prices. It is expected that import iron ore prices in China will continue to rebound in the coming week, while the trend of domestic ore prices will likely remain soft.
Domestic iron ore prices in local Chinese market
Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 450 | 73 | ↓10 |
damp base (iron content: 66%) | Beipiao | 370 | 60 | ↓10 |
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 | 62 | Australia | 500-520 | 80-84 | ↑50 |
| Brazil fines | 63,5 | Brazil | 410-420 | 66-68 | ↑30 | |
| Yandi fines | 58 / 59 | Australia | 360-380 | 58-61 | ↑30 | |
| PB Fines | 61,5 | Australia | 400-420 | 65-68 | ↑30 | |
| PB iron ore lump | 62/63 | Australia | 590-610 | 95-98 | ↑50 | |
| Indian fine ore | 63.5 | India | 420-430 | 68-69 | ↑30 | |
| Indian fine ore | 63 | India | 400-420 | 65-68 | ↑30 | |
| Indian fine ore | 62 | India | 390-410 | 63-66 | ↑30 | |
| Indian fine ore | 61 | India | 370-390 | 60-63 | ↑30 | |
| Indian fine ore | 59 | India | 340-360 | 55-58 | ↑30 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.20