China sees upswing in import ore prices
The monsoon season in India and the slight increase of steel prices in China's markets have helped push up the import price of Indian iron ore in China. According to the latest reports, the import price of 63-63.5% concentrate Indian iron ore increased to $62-65/ton CFR. One transaction for 63% concentrate ore was reportedly concluded for $66-68/ton. Just a week ago, transactions for similar product were being concluded at $60-63/ton CFR. The local prices of 65% concentrate iron ore in Chinese markets vary between RMB 580-780/ton ($72-96/ton) currently. A week ago, the price of the same iron ore was in the RMB 550-780 ($68-96/ton) range. The beginning of the monsoon season in India caused a decrease in ore exports to China. Meanwhile, both the prices of steel in China's markets and the prices of imported scrap increased. Therefore, the demand for iron ore picked up. Ore traders in China are reluctant to sell from their stocks, as they believe that they will be able to hike their prices more towards the winter. Therefore, they continue to import ore from India despite the recent increase in prices.