During the week ending May 29, prices of imported iron ore in China have mostly continued their downtrend, while at the same time traders' offers of domestic production iron ore in the Tangshan district and in Liaoning have also indicated declines. Transaction activity for both imported and domestic iron ore has remained at decent levels, similar to the situation in the previous week.
At present, Indian fine ores of 63.5 percent grade are offered at $114.4/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $114.4/mt and prices of the same material are at $98/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.
Although Chinese steelmakers' iron ore inventories are still at low levels, they have only been purchasing in line with their production needs. Meanwhile, domestic steelmakers currently prefer to purchase lower Fe-content iron ore, thereby negatively impacting the prices of high Fe-content iron ore, which have indicated larger declines than the prices of lower Fe-content iron ore. Some steelmakers will likely start to replenish their inventories if the price of 62 percent Fe Australian iron ore drops to $90/mt. It is expected that iron ore prices in China will continue to move on a soft trend in the coming week.