During the week ending July 28, prices of import iron ore in China from Australia and Brazil have indicated an overall upward trend, while transaction activity for import iron ore has remained slack. At the same time, traders' offers of domestic production iron ore in Tangshan and Liaoning Province are unchanged week on week, with transaction activity for domestic production ore currently at decent levels.
At present, Indian fine ores of 63.5 percent grade are offered at $57.1/mt at Qingdao port. Meanwhile, quotations of 64.6 percent iron ore concentrate in Tangshan stand at $64.4/mt and prices of the same material are at $52.6/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, after a temporary softening, domestic prices of finished steel and semi-finished steel have moved on a stable trend, providing a certain degree of support for iron ore prices. Meanwhile, import iron ore traders and miners have tried to raise their offer prices. However, steelmakers are mostly maintaining a wait-and-see stance, unwilling to conclude transactions for import iron ore, instead choosing to purchase domestic production iron ore to replenish inventories. It is thought that iron ore prices in the overall Chinese market will likely indicate a slight uptrend in the coming week amid upticks in finished steel prices.
Domestic iron ore prices in local Chinese market
Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 430 | 65 | 0 |
damp base (iron content: 66%) | Beipiao | 350 | 53 | 0 |
17 percent VAT is excluded in all prices and all prices are ex-warehouse.
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 | 63/63.5 | Australia | 555-565 | 83-85 | ↑20 |
| Brazil fines | 63,5 | Brazil | 435-445 | 65-67 | ↑20 | |
| Yandi fines | 58 / 59 | Australia | 375-385 | 56-58 | ↑20 | |
| PB Fines | 62 | Australia | 545-555 | 82-83 | ↑20 | |
| PB iron ore lump | 61.5 | Australia | 435-445 | 65-67 | ↑20 | |
| Indian fine ore | 63.5 | India | 375-385 | 56-58 | 0 | |
| Indian fine ore | 63 | India | 365-375 | 55-56 | 0 | |
| Indian fine ore | 62 | India | 355-365 | 53-55 | 0 | |
| Indian fine ore | 61 | India | 345-355 | 52-53 | 0 | |
| Indian fine ore | 59 | India | 315-325 | 47-49 | 0 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.66