During the week ending July 17, prices of imported iron ore in China have continued to indicated upward movement, while at the same time traders' offers of domestic production iron ore in Tangshan and Liaoning have moved on a slight uptrend. Transaction activity for both imported and domestic iron ore has continued to show a steady improvement.
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 $109.5/mt and prices of the same material are at $91.5/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.
Iron ore traders mostly hold an optimistic view of the future prospects for market, while at the same time inquiries and orders from Chinese steelmakers have been at good levels, indicating a further improvement, which has helped to push up imported iron ore prices. With the rises in import prices, steelmakers have also increased their inquiries and purchases for domestic production iron ore products, and so Chinese iron ore producers have also raised their selling prices.
However, steelmakers state that their finished steel inventories have increased and they are consequently experiencing tighter liquidity, which may limit their purchasing activities in the coming period. Overall, sentiment in the iron ore market has improved. It is expected that both imported and domestic production iron ore prices will see further rises in the coming period.