During the week ending January 5, prices of import iron ore for China have indicated a stable 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 also remained stable, with transaction activity for domestic production ore at relatively low levels.
At present, Indian fine ores of 63.5 percent grade are offered at $72.6/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $93.4/mt and prices of the same material are at $78.1/mt in Beipiao, Liaoning, both including VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, traders in the iron ore market are mostly cautious and have kept their prices stable. China’s steel enterprises have reduced their production to a certain extent
and so demand for iron ore has slackened. Iron ore future prices have indicated downward corrections, which will exert negative pressure on iron ore prices in the spot market. It is thought that iron ore prices in the Chinese market will likely soften slightly in the coming week.
Domestic iron ore prices in local Chinese market
| Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 550 | 80 | 0 |
| damp base (iron content: 66%) | Beipiao | 460 | 67 | 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) |
| Newman iron ore lump | Qingdao | 63/63.5 | Australia | 645-655 | 93-95 | 0 |
| Brazil fines | 63,5 | Brazil | 605-615 | 88-89 | 0 | |
| Yandi fines | 58 / 59 | Australia | 515-525 | 75-76 | 0 | |
| PB fines | 61,5 | Australia | 605-615 | 88-89 | 0 | |
| PB iron ore lump | 62 | Australia | 635-645 | 92-93 | 0 | |
| Indian fine ore | 63,5 | India | 495-505 | 72-73 | 0 | |
| Indian fine ore | 63 | India | 485-495 | 70-72 | 0 | |
| Indian fine ore | 62 | India | 465-475 | 67-69 | 0 | |
| Indian fine ore | 61 | India | 445-455 | 65-66 | 0 | |
| Indian fine ore | 59 | India | 405-415 | 59-60 | 0 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.90