Import iron ore prices for China mostly edge up

As of June 22, prices of import iron ore for China mostly indicate slight increases on week-on-week basis, while transaction activity for import iron ore in the past week has been at low-to-medium levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and Liaoning Province have remained stable, with transaction activity for domestic production ore at low-to-medium levels.

At present, Indian fine ores of 63.5 percent grade are offered at $63.1/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $83/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.

Import iron ore prices for China edged down at the beginning of the past week but later switched to an upward trend, moving in line with the fluctuations in iron ore futures prices. Chinese steelmakers have mainly been concluding purchases in line with their needs, though transaction activity has improved compared to the previous week. Iron ore inventories at Chinese ports are at high levels. The capacity utilization rates of blast furnaces in China are on the high side. The rainy season in southern China has negatively impacted demand for finished steel, in turn impacting demand for iron ore. It is thought that iron ore prices in China will likely edge down in the coming week. 

 

 

The prices are deal prices in local market. 

 

17 percent VAT is included in all prices and all prices are ex-warehouse.

 

 

17 percent VAT is excluded in all prices and all prices are ex-warehouse.

 

$1 = RMB 6.83