During the week ending November 20, prices of imported fine iron ore in China have continued to indicate a downtrend as iron ore futures prices weakened significantly, though prices of imported high Fe-content lump ore have moved on a stable trend, with overall transaction activity for imported iron ore still on the low side. At the same time, traders' offers of domestic production iron ore in Tangshan and Liaoning Province have continued to soften, while transaction activity for domestic iron ore is generally slack.
At present, Indian fine ores of 63.5 percent grade are offered at $86.5/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $93mt and prices of the same material are at $75/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China can be viewed in the SteelOrbis price reports section.
During the given week, domestic steelmakers have mostly been expecting iron ore prices to continue to soften and so they have slowed down their replenishment activities and have tried to obtain lower prices for future orders. As for the supply situation, steelmakers believe supplies will increase and thereby exert downward pressure on prices in the spot market, while contributing to bearish sentiment in the iron ore futures market. At present, domestic steelmakers still need to conclude some purchases of iron ore, which will limit the room for declines in iron ore prices in the spot market to some extent. It is expected that iron ore prices in the Chinese market will continue to soften as bearish sentiment is likely to prevail in the market in the coming week.