During the week ending June 1, prices of import iron ore for China have mostly indicated a downward trend, while transaction activity for import iron ore has been at low levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and Liaoning Province have also remained stable, with transaction activity for domestic production ore at decent levels.
At present, Indian fine ores of 63.5 percent grade are offered at $63.9/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $89/mt and prices of the same material are at $71/mt in Beipiao, Liaoning, both including VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, since purchases from users have been at low levels, most import iron ore prices for China have edged down. Domestic rebar prices are at quite high levels, providing a certain degree of support for iron ore prices. However, inventory levels at ports have hit a new high, contributing to the weakening of import iron ore prices. At the same time, prices of domestic production iron ore have remained stable. It is thought import iron ore prices will likely move sideways in the coming week as steelmakers may step up their purchases after the recent Dragon Boat Festival holiday.
Imported iron ore prices
| Product Name | Name of Port | Iron Content % | Place of origin | Truck loaded price (RMB/mt) | Price($/mt) | Weekly Change (RMB/mt) |
| Newman iron ore lump | Qingdao | 63/63.5 | Australia | 625-635 | 92-93 | ↑5 |
| Brazil fines | 63,5 | Brazil | 420-430 | 62-63 | ↓15 | |
| Yandi fines | 58 / 59 | Australia | 395-405 | 58-59 | ↓5 | |
| PB fines | 61,5 | Australia | 433-443 | 64-65 | ↓22 | |
| PB iron ore lump | 62 | Australia | 600-610 | 88-90 | ↑5 | |
| Indian fine ore | 63,5 | India | 435-445 | 64-65 | ↓20 | |
| Indian fine ore | 63 | India | 425-435 | 62-64 | ↓20 | |
| Indian fine ore | 62 | India | 405-415 | 59-61 | ↓20 | |
| Indian fine ore | 61 | India | 385-395 | 57-58 | ↓20 | |
| Indian fine ore | 59 | India | 285-295 | 42-43 | ↓5 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
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 | 520 | 76 | 0 |
| damp base (iron content: 66%) | Beipiao | 420 | 62 | 0 |
17 percent VAT is excluded in all prices and all prices are ex-warehouse.
$1 = RMB 6.80