Chinese iron ore market mostly indicates slight uptrend

During the week ending October 26, prices of import iron ore for China have mostly edged up slightly, while transaction activity for import iron ore in the past week has been at low levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and Liaoning Province have remained stable, with transaction activity for domestic production ore also at low levels.

At present, Indian fine ores of 63.5 percent grade are offered at $62.9/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $83/mt and prices of the same material are at $82/mt in Beipiao, Liaoning, both including VAT. Prices of domestic production and imported iron ore in China are presented in the following table.

During the given week, more supplies of lump ore and high Fe-content iron ore have arrived at Chinese ports, exerting downward pressure on prices of these ores, while all other import iron ore prices have risen slightly. Recently, due to production cuts during the period of the 19th National Congress of the Communist Party of China, steelmakers have been unwilling to build up inventories. In addition, due to the congress, restrictions have been imposed on the operations of steel producers, miners and ore concentrating facilities and also on transportation by diesel vehicles, with steelmakers’ iron ore purchases being negatively impacted by these measures. Moreover, demand for ore is likely to become slacker since the winter season is approaching in northern China. It is thought that import iron ore prices in China will likely move sideways in the coming week.

Imported iron ore prices

The prices are deal prices in local market. 

17 percent VAT is included in all prices and all prices are ex-warehouse.

Domestic iron ore prices in local Chinese market  

17 percent VAT is excluded in all prices and all prices are ex-warehouse. 

 $1 = RMB 6.63