Domestic iron ore prices trend down slightly in China

During the week ending January 5, iron ore prices in the Chinese domestic market have continued to follow a slight downtrend, while import iron ore offers in China have not indicated any noticeable changes.
 
At present, Indian fine ores of 63.5 percent grade are offered at $165.1/mt at Qingdao port, while Australian lump ores of 62 percent or 63 percent grade are also priced at $165.1/mt, both unchanged from the previous week. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan are at $146/mt, while the price of the same product has declined by $3.2/mt week on week to $122.2/mt in Beipiao, both excluding VAT.
 
The Chinese Lunar New Year holiday is now approaching and the pre-holiday iron ore restocking process in the Chinese market has almost come to an end. In addition, purchasing activities for iron ore are now being carried out on a minimum basis in the context of the relatively low capacity utilization rates of domestic steel producers. Overseas miners are maintaining high offers, while domestic miners have mostly reduced their iron ore offers before the holiday. Coming towards the Lunar New Year holiday, iron ore prices are expected to trend down steadily in the Chinese market.