Activity improves slowly in iron ore market in China

During the week ending February 25, prices of import iron ore in China have continued their rising trend, while transaction activity for import iron ore has been better than in the previous week, though remaining at low levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and Liaoning Province have moved on a stable trend, while overall demand for domestic production iron ore has also been sluggish, though it is somewhat better than demand for imported ore.

 

At present, Indian fine ores of 63.5 percent grade are offered at $56.7/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $52.1/mt and prices of the same material are at $44.4/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, with China showing some determination to reduce finished steel production capacities, in the short term this has some positive impact on finished steel prices and thereby on iron ore prices. However, Chinese steelmakers are cautious at present about purchasing iron ore imports. It is thought that iron ore prices in the Chinese market will likely move sideways in the coming week after recent continuous rises.

 

$1 = RMB 6.53