During the week ending December 3, prices of imported iron ore in China have indicated an overall downtrend, while transaction activity for imported iron ore has continued to be at low levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and Liaoning Province have softened further, while overall demand for domestic production iron ore has been sluggish.
At present, Indian fine ores of 63.5 percent grade are offered at $50.8/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $50.0/mt and prices of the same material are at $53.2/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, the oversupply situation in iron ore market has exerted a negative impact on iron ore prices. Meanwhile, due to cold winter weather conditions, demand for finished steel has been slack, negatively influencing demand for iron ore. Unlike previous years, Chinese steelmakers have chosen to consume their inventories of iron ore instead of building up stocks for winter usage, resulting in slack transaction activities. It is expected that iron ore prices in the Chinese market will continue their downtrend in the coming week against the backdrop of the winter offseason for business.
Domestic iron ore prices in local Chinese market
| Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 320 | 50 | ↓10 |
| damp base (iron content: 66%) | Beipiao | 340 | 54 | ↓10 |
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 | 355-375 | 56-59 | ↓20 |
| Brazil fines | 63,5 | Brazil | 325-335 | 51-53 | ↓15 | |
| Yandi fines | 58 / 59 | Australia | 285-295 | 45-46 | ↓15 | |
| PB Fines | 62 | Australia | 345-355 | 54-56 | ↓20 | |
| PB iron ore lump | 61.5 | Australia | 305-315 | 48-50 | ↓20 | |
| Indian fine ore | 63.5 | India | 320-330 | 50-52 | ↓20 | |
| Indian fine ore | 63 | India | 310-320 | 49-50 | ↓20 | |
| Indian fine ore | 62 | India | 295-305 | 46-48 | ↓20 | |
| Indian fine ore | 61 | India | 285-290 | 45-46 | ↓20 | |
| Indian fine ore | 59 | India | 250-255 | 39-40 | ↓20 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.40