Decreases continue in Chinese iron ore market

During the week ending August 30, import iron ore prices in the Chinese market have accelerated their downtrend, with offers from Australia and Brazil declining by over $10/mt. In Tangshan and Beipiao domestic iron ore prices have declined by $3.2/mt week on week.
 
At present, Indian fine ores of 63.5 percent grade are offered at $119.9/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $124.6/mt, while prices of similar material are at the level of $102.5/mt in Beipiao, both excluding VAT. Prices of imported and domestic production iron ore in China can be viewed in the SteelOrbis price reports section.
 
Suffering from low liquidity, traders who previously booked import iron ore resources at high prices are now forced to sell off these materials at large discounts. On the other hand, as steel mills in China are not inclined to participate in overseas iron ore tenders, foreign suppliers have been obliged to lower their offers. Amid low confidence levels, the Chinese iron ore market is expected to continue its decline in the short term.