During the week ending November 5, prices of imported iron ore in China have indicated a sharp downtrend, while transaction activity for imported iron ore has been slacker compared to the previous week and is now at low levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and Liaoning Province have remained stable, while overall demand for domestic production iron ore has been better than demand for imported iron ore.
At present, Indian fine ores of 63.5 percent grade are offered at $58.5/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $66.4/mt and prices of the same material are at $56.9/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, domestic steelmakers have reduced their purchases of iron ore, exerting a negative impact on iron ore prices. Meanwhile, market participants are pessimistic in their expectations for the overall ferrous metal sector, negatively influencing the iron ore market, and forcing traders to lower their iron ore prices to stimulate sales activities, but without any obvious success. Moreover, in the past five trading days, iron ore futures prices at Dalian Commodities Exchange have decreased by four percent, which also reflects market participants’ pessimistic view of the future prospects for the iron ore market. It is thought that iron ore prices in the Chinese market will move on a soft trend in the coming week.
Domestic iron ore prices in local Chinese market
| Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 420 | 67 | 0 |
| damp base (iron content: 66%) | Beipiao | 360 | 57 | 0 |
17 percent VAT is excluded in all prices and all prices are ex-warehouse.
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) |
| PB iron ore lump | Qingdao | 63/63.5 | Australia | 455-465 | 72-74 | ↓50 |
| Brazil fines | 63,5 | Brazil | 375-385 | 59-61 | ↓25 | |
| Yandi fines | 58 / 59 | Australia | 335-345 | 53-55 | ↓25 | |
| PB Fines | 62 | Australia | 395-405 | 63-64 | ↓25 | |
| PB iron ore lump | 61.5 | Australia | 355-365 | 56-58 | ↓30 | |
| Indian fine ore | 63.5 | India | 365-375 | 58-59 | ↓25 | |
| Indian fine ore | 63 | India | 355-365 | 56-58 | ↓30 | |
| Indian fine ore | 62 | India | 345-355 | 55-56 | ↓20 | |
| Indian fine ore | 61 | India | 325-340 | 52-54 | ↓25 | |
| Indian fine ore | 59 | India | 300-310 | 48-49 | ↓40 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.35