SteelOrbis Shanghai
Over the past week, China's iron ore market moved to a stable trend after experiencing a continuous increase in previous weeks. Meanwhile, the inventory of imported ore saw a sharp rise at the ports.
On January 18, the price of 66-percent damp base
iron ore in Tangshan has risen RMB 10/mt ($ 1.3/mt) to RMB 590/mt ($75.9/mt) (tax excluded), while its price in Beipiao Liaoning Province remained unchanged at RMB 475/mt ($61.1/mt) (tax excluded). The price quotation of 63.5-percent
India fine ore was constant at RMB 680/mt ($87.5/mt) at Tianjin Port, while the price at Qingdao Port was at RMB 665/mt ($85.6/mt). Finally, the price of Australian Hamersley 62- and 63-percent fine ore at Beilun Port was at RMB 660/mt ($84.9/mt), equal to the level of the previous week.
China's
iron ore market saw flat movement throughout the past week, except for the price increase in Tangshan. The prices of imported ore also remained stable, with only a slight rise in low-grade ore at Tianjin Port.
Due to the frequent arrivals of supplies in recent days, the inventories of imported ore at the ports have jumped up dramatically. By the end of the previous week, the total
iron ore inventory at
China's twenty-three major ports amounted to 40.15 million mt, up 1.92 million mt compared with the end of 2006. This increased inventory did not affect prices, because the brisk demand, the rising quotations of Indian ore and increasing
freight charges all firmly supported the present price levels.
According to the
China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters (CCCMC), the FOB price of 63.5-percent Indian ore has risen $2/mt to $58-59/mt. The CIF price, meanwhile, also saw an increase, moving up to $82-83/mt.
All in all,
China's
iron ore market has now entered a phase characterized by stability, with no remarkable changes expected in the short run. However, ascending demand and rising cost levels will most likely drive market prices steadily up in the longer term.