During the week ending June 16, prices of import iron ore from Brazil and Australia in China have indicated an upward trend, though prices of iron ore from India have softened, 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 in Liaoning Province have moved on a stable trend, with transaction activity for domestic production ore at low levels.
At present, Indian fine ores of 63.5 percent grade are offered at $50.2/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $62.4/mt and prices of the same material are at $53.3/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, due to the rebound in the domestic long and flat steel markets, iron ore prices from Brazil and Australia have gained support and edged up slightly, while Indian ore prices have moved down due to a lack of inquiries. Chinese steelmakers have been purchasing iron ore just in line with their production needs. Since domestic finished steel prices are unlikely to continue their upward movement, iron ore prices will lack support to edge up further. It is thought that iron ore prices in the Chinese market will likely move sideways in the coming week.
Domestic iron ore prices in local Chinese market
| Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 410 | 63 | 0 |
| damp base (iron content: 66%) | Beipiao | 350 | 54 | 0 |
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 | 495-505 | 76-77 | ↑10 |
| Brazil fines | 63,5 | Brazil | 375-385 | 60-62 | ↑10 | |
| Yandi fines | 58 / 59 | Australia | 335-345 | 54-55 | ↑10 | |
| PB Fines | 62 | Australia | 485-495 | 78-79 | ↑10 | |
| PB iron ore lump | 61.5 | Australia | 375-385 | 60-62 | ↑10 | |
| Indian fine ore | 63.5 | India | 325-335 | 52-54 | ↓30 | |
| Indian fine ore | 63 | India | 315-325 | 51-52 | ↓30 | |
| Indian fine ore | 62 | India | 305-315 | 49-51 | ↓30 | |
| Indian fine ore | 61 | India | 295-305 | 47-49 | ↓30 | |
| Indian fine ore | 59 | India | 265-275 | 43-44 | ↓30 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.58