During the week ending September 24, prices of imported iron ore in China have indicated a declining trend for ore from Brazil and Australia, though remaining stable for Indian ore, while transaction activity for imported iron ore has been somewhat slacker than in the previous week, though remaining at decent levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and Liaoning Province have moved on a stable trend, while overall demand for domestic production iron ore has improved and is also at decent levels.
At present, Indian fine ores of 63.5 percent grade are offered at $70/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $69.2/mt and prices of the same material are at $56.6/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, although iron ore miners and traders have tried to push up iron ore prices in the traditional peak season of September, the ongoing declines in finished steel prices have exerted strong pressure on iron ore prices. Demand for imported iron ore has been negatively impacted, while transaction activity for domestic production iron ore has improved.
As the Mid-Autumn Festival (September 26-27) and National Day Holiday (October 1-7) are approaching, steelmakers will likely increase their purchases of iron ore, though this is unlikely to provide solid support for iron ore prices, especially against the backdrop of soft finished steel prices. It is expected that iron ore prices in the Chinese market will move sideways in the coming week.
Domestic iron ore prices in local Chinese market
| Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 440 | 69 | 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 | 570-590 | 89-92 | 0 |
| Brazil fines | 63,5 | Brazil | 445-465 | 70-73 | ↓5 | |
| Yandi fines | 58 / 59 | Australia | 400-410 | 63-64 | ↓10 | |
| PB Fines | 62 | Australia | 460-480 | 72-75 | ↓10 | |
| PB iron ore lump | 61.5 | Australia | 435-445 | 68-70 | ↓5 | |
| Indian fine ore | 63.5 | India | 440-450 | 69-71 | 0 | |
| Indian fine ore | 63 | India | 430-440 | 67-69 | 0 | |
| Indian fine ore | 62 | India | 410-430 | 64-67 | 0 | |
| Indian fine ore | 61 | India | 400-410 | 63-64 | 0 | |
| Indian fine ore | 59 | India | 370-390 | 58-61 | 0 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.38