Fairly stable week for Chinese iron ore prices

Fairly stable week for Chinese iron ore prices

While prices of some varieties of iron ore in China fluctuated over the past week, there was no discernable difference in prices when all was said and done. Prices in Liaoning Province saw a slight increase early in the week, but by the end of the week they had retreated to their previous levels. Imported Indian iron ore prices were basically a wash, as some increased while others decreased. The market condition picked up slightly. By the end of trading on Thursday, November 17, the price of 66-percent damp base iron ore in Tangshan was RMB 520/mt ($64), excluding tax. The price of similar ore in Beipiao, Liaoning Province, was RMB 420/mt ($52), excluding tax. The above-mentioned prices were equal to those of the prior week. The price quotation of 63.5-percent India fine ore was down RMB 10/mt ($1) to RMB 640/mt ($80) at Tianjin Port, and the price at Qingao Port was unchanged at RMB 630/mt ($78). The price of Peru 65-percent pellet at Beilun Port was RMB 880/mt ($110), also unchanged. The iron ore price in Liaoning Province was quoted at different levels all throughout the past week. The minor rebound and the increasing purchasing power in Tangshan pushed up the iron concentrate prices; however, the transaction volume plummeted after the price increase. Thus some miners cut their price quotations as they were not optimistic about the future of the market. This in turn brought the prevailing market price back to the level of the previous week. Nevertheless, some other miners held differing opinions. Not many commercial activities took place since price quotations were relatively high price. A few steelmakers cut their procurement prices to further lower their cost. In the imported iron ore market, prices have remained at $65-70/mt for the past three weeks. Prices of Indian fine ore at Chinese ports slightly increased to $67-70/mt CFR. Both the demand from steelmakers and the sales volume of miners are steady. Most industry insiders think that there is a very slim chance that prices might decline by a large amount. Although the price negotiations have not started yet, the gamesmanship between miners and steelmakers is in full swing, suggesting that this will be a difficult contest. A Japanese industry insider met with Chinese counterparts at the Diaoyutai State Guesthouse in Beijing. The two parties hoped to coordinate their stances for the iron ore price negotiations. The consensus from the meeting was that prices should be decreased. Not to be outdone, however, the chief economist with Australian mining giant Rio Tinto told attendees of the Mining Industry Forum in Beijing that the current global mining market is in the midst of an upward price trend. SteelOrbis Shanghai