Prices of imported iron ore in the Chinese domestic market have followed a downward trend during the week ending October 31, amid low transaction volumes and weak demand. Meanwhile, the prices of domestic production iron ore in Tangshan and Liaoning have remained unchanged as compared to last week.
At present, Indian fine ores of 63.5 percent grade are offered at $153.6/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $137.3/mt, and the prices of the same material are at $116/mt in Beipiao, both excluding VAT. Prices of domestic production and imported iron ore in China can be viewed in the SteelOrbis price reports section.
Chinese steelmakers have been tending to reduce their outputs amid the narrowing of their profit margins, and so they are less eager to place new orders for iron ore. Rising inventories at Chinese ports reflect the oversupply situation in the domestic iron ore market, which contributes to the weakening of iron ore prices. Meanwhile, the downward trend of iron ore futures prices at Dalian Commodity Exchange (DCE) points to pessimism regarding the prospects for the domestic iron ore market in the coming period. It is thought that iron ore prices in China will continue to be characterized by softness in the week ahead.