During the week ending March 2, prices of import iron ore for China have indicated a slight downtrend, while transaction activity for import iron ore has been at low-to-medium levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and Liaoning Province have increased, with transaction activity for domestic production ore at decent levels.
At present, Indian fine ores of 63.5 percent grade are offered at $92.9/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $115.5/mt and prices of the same material are at $95.1/mt in Beipiao, Liaoning, both including VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, Chinese steelmakers have stepped up their purchases of domestic production iron ore, while they have been somewhat less interested in concluding purchases of import iron ore, and this has exerted negative pressure on import iron ore prices, while providing support for domestic iron ore prices. With domestic ferrous metal futures prices tending towards stability, it is thought that iron ore prices in the Chinese market will likely move sideways with only minor fluctuations in the coming week.
Imported iron ore prices in local Chinese market
| Product Name | Name of Port | Iron Content % | Place of origin | Truck loaded price (RMB/mt) | Price($/mt) | Weekly Change (RMB/mt) |
| Newman iron ore lump | Qingdao | 63/63.5 | Australia | 725-735 | 105-107 | ↓10 |
| Brazil fines | 63,5 | Brazil | 665-675 | 97-98 | ↓10 | |
| Yandi fines | 58 / 59 | Australia | 575-585 | 84-85 | ↓10 | |
| PB fines | 61,5 | Australia | 675-685 | 98-99 | ↓10 | |
| PB iron ore lump | 62 | Australia | 705-715 | 102-104 | ↓10 | |
| Indian fine ore | 63,5 | India | 635-645 | 92-94 | ↓10 | |
| Indian fine ore | 63 | India | 625-635 | 91-92 | ↓10 | |
| Indian fine ore | 62 | India | 605-615 | 88-89 | ↓10 | |
| Indian fine ore | 61 | India | 585-595 | 85-86 | ↓10 | |
| Indian fine ore | 59 | India | 445-455 | 65-66 | ↓10 |
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
| 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 | 680 | 99 | ↑50 |
| damp base (iron content: 66%) | Beipiao | 560 | 81 | ↑60 |
17 percent VAT is excluded in all prices and all prices are ex-warehouse.
$1 = RMB 6.88