During the week ending August 11, prices of import iron ore in China have indicated a stable trend, while transaction activity for import iron ore has been at decent levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and Liaoning Province have moved on a slight upward trend, with transaction activity for domestic production ore also currently at decent levels.
At present, Indian fine ores of 63.5 percent grade are offered at $58.7/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $69.3/mt and prices of the same material are at $55.7/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, Chinese steel mills have increased finished steel production, stimulating demand for iron ore and so transaction activity has been at decent levels. Meanwhile, ferrous metal futures prices in China have been increasing, and this has provided support for import iron ore prices. It is expected that iron ore prices in the Chinese market will likely indicate a slight rising trend in the coming week.
Domestic iron ore prices in local Chinese market
| Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 460 | 69 | ↑20 |
| damp base (iron content: 66%) | Beipiao | 370 | 55 | ↑20 |
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 | 575-585 | 86-87 | 0 |
| Brazil fines | 63,5 | Brazil | 455-465 | 68-69 | 0 | |
| Yandi fines | 58 / 59 | Australia | 395-405 | 59-60 | 0 | |
| PB Fines | 62 | Australia | 565-575 | 84-86 | 0 | |
| PB iron ore lump | 61.5 | Australia | 455-465 | 68-69 | 0 | |
| Indian fine ore | 63.5 | India | 385-395 | 57-59 | 0 | |
| Indian fine ore | 63 | India | 375-385 | 56-57 | 0 | |
| Indian fine ore | 62 | India | 365-375 | 54-56 | 0 | |
| Indian fine ore | 61 | India | 355-365 | 53-54 | 0 | |
| Indian fine ore | 59 | India | 325-335 | 48-50 | 0 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.65