SteelOrbis Shanghai Experiencing a relatively long period of standstill, Chinese
iron ore market is becoming clear at present. Under the pressure of inventory decrease, steel mills had to hike the
iron ore purchase prices last Friday to make up for the inventory, which boosted up the domestic
iron ore prices. The increase range was around RMB 15/mt ($2) for domestic
iron ore in Tianjin and RMB 20/mt ($3) for Brazilian ore in Qingdao. The prices of Australian and Indian ore increased around RMB 5-10/mt ($1). There is no official announcement regarding the outcome of the negotiations between
Baosteel and global
iron ore suppliers yet. Therefore, the range of price increase in local markets is not large. However, the mines are generally optimistic about the future of the market and the steel mills are not lowering their purchase prices. Imported
iron ore market is going on well generally with the increasing inquiries from steel mills, but the commercial activities are not so brisk. Traders are not satisfied with the current prices and believe that there would be a large increase range in the future. Therefore, they are limiting the quantity they sell and waiting for the price increase. On June 9, the total inventory of
iron ore in
China's twenty-three major ports was 42.47 million metric tons, up 0.42 million metric tons compared with the level of the previous week. According to
China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters (CCCMC), the FOB price of 63.5 percent ex-India fine ore is at $53-54/mt, and the CIF price is at $68-69/mt, both are up $1/mt week on week. Overall, Chinese
iron ore market is in the upward trend and expected to rise steadily in the future. But since Chinese government will take measures on the macro-economy soon, the demand will be limited at a certain extent. Regardless, mines and traders are generally cautious but optimistic about the increase range in the future.