After a three-month continuous fall, the Chinese import iron ore market has observed an overall rebound during the past week. However, despite an increase in the volume of inquiries, actual demand has not yet improved. At present, the Indian offers for fine ores of 63.5 percent grade have risen to $198/mt at Chinese ports, up 16 percent compared to $170/mt three weeks ago. Meanwhile, at Chinese ports, Australian iron ore offers have registered an increase of $1.5-4.6/mt, while Brazilian Carajas fine ore offers have risen by $4.6/mt, both compared with three weeks ago. Chinese steel producers will start operating with second quarter iron ore contract prices in April. In Q2, the contract price of Australian fine ores of 61.5 percent grade will climb to $167/mt from $135/mt in the first quarter, up 24 percent quarter on quarter.
Imported Iron Ore Prices
Product name |
Port |
Iron content (%) |
Place of origin |
Price ($/mt) |
Newman ore |
Qingdao |
62/63 |
207.9 |
|
Carajas fines |
66/67 |
218.5 |
||
Yandi fines |
58 / 59 |
174.5 |
||
MAC Fines |
62 |
200.3 |
||
PB Fines |
62/63 |
191.2 |
||
Indian fine ore |
63.5 |
198.8 |
||
Indian fine ore |
63 |
195.8 |
||
Indian fine ore |
62 |
186.6 |
||
Indian fine ore |
61 |
179.1 |
||
Indian fine ore |
59 |
160.8 |
Meanwhile, the after-effect of the Japanese earthquake on local Japanese steel mills is less severe than expected, and this has boosted market players' confidence in the iron ore market. Various Japanese steel plants recommenced production operations in late March. Due to rationing of electricity supply, steel production in Japan is not expected to recover fully in April.
Domestic iron concentrate prices
Product name |
Specification |
Change |
Price（$/mt) |
Place of origin |
Iron concentrate |
damp base (iron content: 66 percent) |
+30 |
162.4 |
Tangshan |
Iron concentrate |
damp base (iron content: 66 percent) |
0 |
144.9 |
Beipiao |
In the eastern and northern regions of China, the iron concentrate price has been rising continuously, with a total increase of RMB 20-40/mt ($3-6/mt) in the past week. Nevertheless, actual transaction activity has remained slow. During the week in question, some steel mills with low iron concentrate inventories in Tangshan have been eager to conclude new purchases, thus pushing up market prices significantly. Those mills which have high levels of inventories have been remaining on the sidelines.
In eastern China, iron concentrate prices have imitated the pricing trend in the finished steel markets, trending up slightly with an improvement in market activities. Several big local miners such as Luzhong and Hualian have also announced an hike of RMB 50/mt ($7.6/mt) in their iron concentrate offers. In the central and southern regions, iron concentrate prices have trended stable. Steel mills in these regions are now waiting for a clearer market situation.
Currently, domestic steel producers in China are mostly adopting a prudent approach to iron ore purchases.