Having followed a fluctuating trend over the past week, prices of ex-Australia iron ore of 62 percent Fe content for delivery to China’s Qingdao port have increased by $2.7/mt on Monday, December 18, compared to last Friday, starting the current week at $73.85-74.50/mt CFR China. The upward movement of iron ore prices in China is supported by iron ore futures prices and also by the acceleration of purchases for stock replenishment.
It is observed that domestic demand for steel products in China has declined due to high prices and colder weather, while finished steel inventories in China have increased. China’s Ministry of Finance (MOF) announced on Friday, December 15, that the export tax on some steel products will be removed as of January 1, 2018, while export duty rates for other steel products will be revised. Particularly since finished steel inventory levels are rising in China, the MOF’s announcement has received a positive response in China, and upward movements are observed in prices of both steel futures and iron ore, for which demand is currently stable.