Decent transaction activity for iron ore imports in China

During the week ending May 21, prices of imported iron ore in China have indicated a slight downward movement, while transaction activity for imported iron ore has been at decent levels. At the same time, traders' offers of domestic production iron ore in Tangshan and Liaoning Province have followed a stable trend.

At present, Indian fine ores of 63.5 percent grade are offered at $71/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $74.2/mt and prices of the same material are at $59.7/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, iron ore futures prices at Dalian Commodity Exchange have indicated a declining trend, exerting a negative impact on the iron ore spot market. At the same time, miners and iron ore traders have been willing to sell at lower prices to stimulate transaction activities, contributing to the slight decreases in imported iron ore prices. It is thought that iron ore prices in the Chinese market may see slight fluctuations in the coming week, with some minor downticks possible. 

17 percent VAT is excluded in all prices and all prices are ex-warehouse.

$1 = RMB 6.20