During the week ending January 12, prices of import iron ore for China have indicated a slight rising trend, while transaction activity for import iron ore has been at low-to-medium levels. At the same time, traders’ offers of domestic production iron ore in Tangshan Province have softened, while traders’ domestic ore offers in Liaoning Province have remained stable, with transaction activity for domestic production ore at low levels.
At present, Indian fine ores of 63.5 percent grade are offered at $78.4/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $90.0/mt and prices of the same material are at $78.1/mt in Beipiao, Liaoning, both including VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, China initiated further investigations in relation to intermediate frequency melting furnaces, contributing to the upward movement of steel prices in the spot market and providing a certain degree of support for prices of steelmaking raw materials. Accordingly, prices of import iron ore for China have indicated a rising trend, especially prices of Indian fine ore. However, due to slack demand from downstream users and poor transaction activity, weak sentiment has prevailed in the market for domestic production iron ore, causing domestic ore prices to move down. Steel enterprises are mostly maintaining a wait-and-see stance towards purchases of iron ore. It is thought that iron ore prices in the Chinese market will likely move on a stable trend in the coming week.
Domestic iron ore prices in local Chinese market
| Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 530 | 77 | ↓20 |
| damp base (iron content: 66%) | Beipiao | 460 | 67 | 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) |
| Newman iron ore lump | Qingdao | 63/63.5 | Australia | 655-665 | 95-96 | ↑10 |
| Brazil fines | 63,5 | Brazil | 615-625 | 89-90 | ↑10 | |
| Yandi fines | 58 / 59 | Australia | 525-535 | 76-77 | ↑10 | |
| PB fines | 61,5 | Australia | 615-625 | 89-90 | ↑10 | |
| PB iron ore lump | 62 | Australia | 645-655 | 93-95 | ↑10 | |
| Indian fine ore | 63,5 | India | 535-545 | 77-79 | ↑40 | |
| Indian fine ore | 63 | India | 525-535 | 76-77 | ↑40 | |
| Indian fine ore | 62 | India | 505-515 | 73-75 | ↑40 | |
| Indian fine ore | 61 | India | 485-495 | 70-72 | ↑40 | |
| Indian fine ore | 59 | India | 445-454 | 64-66 | ↑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 6.91