Chinese mills' increased purchases help stabilize iron ore prices

During the week ending February 5, prices of imported iron ore in China have indicated an overall stable trend, while transaction activity for imported iron ore has seen some improvement as steelmakers have increased their purchase volumes. At the same time, traders' offers of domestic production iron ore in Tangshan have followed a stable trend, while prices of domestic production iron ore in Liaoning Province have seen slight decreases.
 
At present, Indian fine ores of 63.5 percent grade are offered at $75.3/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 $62.5/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China can be viewed in the SteelOrbis price reports section.
 
During the given week, in order to prepare for the coming Spring Festival holiday (February 18-24), Chinese steelmakers increased their inquiries and transaction activities for iron ore, providing support for the stabilization of iron ore prices. With next week the last trading week before the Spring Festival holiday, it is thought that iron ore prices may see only slight fluctuations in the coming week as the purchasing activities of steelmakers will slacken and the market will become quiet.