Chinese imported ore market still stable

SteelOrbis Shanghai With brisk inquiries and commercial activity, the Chinese imported ore market remained steady over the past week. The domestic ore market also showed more or less stable movement, with the northeastern region seeing a weak trend due to the near-completion of the winter stocking up period. On November 30, the price of 66-percent damp base iron ore in Tangshan was up RMB 5/mt ($0.6) to RMB 575/mt ($73.3) exluding 13 percent VAT, while its price in Beipiao Liaoning Province was at RMB 460/mt ($58.7) excluding VAT. The price quotation of 63.5-percent India fine ore was at RMB 645/mt ($82.3) at Tianjin Port, while the price at Qingdao Port was at RMB 635/mt ($81). The price of Australian Hamersley 62- and 63-percent fine ore at Beilun Port was at RMB 640/mt ($81.6). These latter prices were all equal to the level of the previous week. During the course of the week, imported ore saw a good trading performance at the ports. According to the statistics, by the end of the previous week, the total inventory of iron ore in China's twenty-three major ports amounted to 37.48 million mt, up just 140,000 mt week on week. The brisk inquiries and commercial activity boosted importers' confidence, and therefore the price quotations of iron ore of iron content lower than 60 percent or higher than 65 percent climbed up to a certain extent, except for the price of 63.5-percent iron ore. Furthermore, influenced by the increased freight charges, the CIF price of Indian ore was up approximately $1/mt, with 63.5-percent fine ore at $75/mt. However, the FOB price still remained unchanged at $55/mt over the last week. As regards the domestic ore market, prices continued their stable movement throughout the past week. After the active purchasing which lasted for nearly two months, winter stocking up is now coming to an end for steel mills in the northeastern region. With the sluggish trading in the northeast, some mines lowered their quotations to mills and traders in northern China so as to guarantee sales revenues. However, most of the local mines are still maintaining their wait-and-see approach because of the low inventory levels at present. As regards the other regions, their markets continued stable on the whole. Due to the end of the winter stocking up process in the northeastern region, demand is likely to fall and this will have the biggest negative impact for the price trend in the upcoming period.