During the week ending September 1, prices of import iron ore for China have moved on a downward trend, while transaction activity for import iron ore has been at low levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and Liaoning Province have moved on a slight uptrend, with transaction activity for domestic production ore at decent levels.
At present, Indian fine ores of 63.5 percent grade are offered at $55.3/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $74.7/mt and prices of the same material are at $59.8/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, Chinese steelmakers have been more willing to purchase domestic production iron ore, pushing up prices of domestic ore. International miners have reduced deliveries of iron ore, but this has not been sufficient to offset the pressure from slack purchases, causing import iron ore prices to move on a soft trend. Currently, iron ore futures prices have also softened, exerting a negative impact on iron ore spot market prices. At the same time, some Chinese steelmakers delayed their bookings for import iron ore. It is thought that import iron ore prices for China will likely move down in the coming week.
Domestic iron ore prices in local Chinese market
| Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 500 | 75 | ↑20 |
| damp base (iron content: 66%) | Beipiao | 400 | 60 | ↑10 |
17 percent VAT is excluded in all prices and all prices are ex-warehouse.
Imported iron ore prices in local Chinese market
| Product Name | Name of Port | Iron Content % | Place of origin | Truck loaded price (RMB/mt) | Price($/mt) | Weekly Change (RMB/mt) |
| PB iron ore lump | Qingdao | 63/63.5 | Australia | 545-555 | 82-83 | ↓10 |
| Brazil fines | 63,5 | Brazil | 435-445 | 66-67 | ↓10 | |
| Yandi fines | 58 / 59 | Australia | 345-355 | 52-54 | ↓10 | |
| PB Fines | 62 | Australia | 535-545 | 80-82 | ↓10 | |
| PB iron ore lump | 61.5 | Australia | 425-435 | 64-66 | ↓10 | |
| Indian fine ore | 63.5 | India | 365-375 | 55-57 | ↓10 | |
| Indian fine ore | 63 | India | 355-365 | 54-55 | ↓10 | |
| Indian fine ore | 62 | India | 345-355 | 52-54 | ↓10 | |
| Indian fine ore | 61 | India | 335-345 | 51-52 | ↓10 | |
| Indian fine ore | 59 | India | 305-315 | 46-48 | ↓10 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.68