During the week ending November 24, prices of import iron ore for China have mostly indicated increases, while transaction activity for import iron ore has been at decent levels. At the same time, traders’ offers of domestic production iron ore in Tangshan have remained stable, while their offers in Liaoning Province have indicated a slight uptrend, with transaction activity for domestic production ore at low-to-medium levels.
At present, Indian fine ores of 63.5 percent grade are offered at $74/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $76.9/mt and prices of the same material are at $63.9/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, finished steel and coke prices in China have moved up again, while iron ore futures prices have risen sharply in recent days, causing iron ore prices in the spot market to move up. Steelmakers have concluded purchases to meet their production needs, resulting in decent transaction activity for import iron ore, though demand for domestic production iron ore has in comparison been weaker as steelmakers have preferred to buy ore with high iron content. With the futures market positively impacted by Goldman Sachs’ upward revision of its iron ore price forecast for 2017, it is thought that iron ore prices in the Chinese market will likely trend up further in the coming week.
Domestic iron ore prices in local Chinese market
| Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 530 | 77 | 0 |
| damp base (iron content: 66%) | Beipiao | 440 | 64 | ↑10 |
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 | 615-625 | 89-90 | ↑30 | |
| Yandi fines | 58 / 59 | Australia | 525-535 | 76-77 | ↑10 | |
| PB fines | 61.5 | Australia | 615-625 | 89-90 | ↑20 | |
| PB iron ore lump | 62 | Australia | 635-645 | 92-93 | 0 | |
| Indian fine ore | 63.5 | India | 505-515 | 73-74 | ↑20 | |
| Indian fine ore | 63 | India | 495-505 | 72-73 | ↑20 | |
| Indian fine ore | 62 | India | 475-485 | 69-70 | ↑20 | |
| Indian fine ore | 61 | India | 455-465 | 66-67 | ↑20 | |
| Indian fine ore | 59 | India | 415-425 | 60-61 | ↑20 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.92