Steel mills replenish inventories in Chinese iron ore market

Thursday, 11 December 2014 14:33:14 (GMT+3)   |   Shanghai
       

During the week ending December 11, prices of imported fine iron ore from India in China have mostly indicated minor downticks, with prices for Australian and Brazilian iron ore moving sideways, while transaction activity for imported iron ore has seen some improvements compared to the previous week. At the same time, traders' offers of domestic production iron ore in Tangshan and Liaoning Province have continued to follow a slight downtrend, while transaction activity for domestic iron ore is generally slack.
 
At present, Indian fine ores of 63.5 percent grade are offered at $81.6/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $88.1/mt and prices of the same material are at $68.5/mt in Beipiao, Liaoning, 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, in order to replenish inventories, domestic steelmakers have increased their purchasing activities. Steelmakers who previously used more domestic production iron ore have started to purchase more imported iron ore, resulting in increased inquiries and transaction volumes for imported iron ore and declines in imported ore inventories at Chinese ports. As iron ore supply is still plentiful, market conditions still favor the steelmakers. It is expected that iron ore prices in the Chinese market will continue their downward movement in the coming week as traders in the spot market lack confidence and as overseas miners have cut their offer prices. 
  

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