During the week ending November 10, there was an increase in iron ore inventory replenishing activity in China, with domestic steelmakers making more inquiries. However, traders have been unwilling to sell at low prices, instead making tentative increases to their prices. Import iron ore offers at ports have rebounded noticeably as traders expected, especially as regards Brazilian and Australian iron ore. Meanwhile, spot iron ore prices in the Chinese domestic market have not followed suit, with iron ore concentrate prices in Tangshan and Beipiao remaining relatively stable.
As can be seen in SteelOrbis Steel Prices section, Indian fine ores of 63.5 percent grade are offered at $165.9/mt at Qingdao port, while Australian lump ores of 62 percent or 63 percent grade are priced at $172.2/mt. Meanwhile, the quotation of 66 percent iron ore concentrate in Tangshan is $143.8/mt, while the price of the similar product in Beipiao has climbed to $128/mt.
The rebound may be mainly attributed to the urgent desire of traders and miners to reverse the soft price trend. The increase of inquiries from steelmakers seeking to replenish their iron ore stocks has also played a positive role in the rise of iron ore prices. In view of the current market sentiment, it is expected that iron ore prices in China will trend up slightly in the coming week. In the long run, however, with the increase in global iron ore supplies, iron ore prices are not likely to trend up much further in China.