During the week ending March 30, prices of import iron ore for China have indicated a declining trend, while transaction activity for import iron ore has been at low-to-medium levels. At the same time, traders' offers of domestic production iron ore have also indicated a soft trend, 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 $87.3/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $108/mt and prices of the same material are at $92/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, the significant declines in Chinese domestic finished steel and semi-finished steel prices have caused Chinese steelmakers to lower their purchase prices for iron ore, dragging down import iron ore prices and also affecting local iron ore prices. Meanwhile, the rising iron ore inventory at Chinese ports has negatively influenced prices of imported iron ore. In addition, traders are not as confident as they were previously since the steel market has so far not performed as well as expected. It is expected that iron ore prices in China will move down slightly in the coming week.
Imported iron ore prices in local Chinese market
Product Name | Name of Port | Iron Content % | Place of origin | Truck loaded price (RMB/mt) | Price($/mt) | Weekly Change (RMB/mt) |
Newman iron ore lump | Qingdao | 63/63.5 | Australia | 670-680 | 97-99 | ↓20 |
Brazil fines | 63,5 | Brazil | 620-630 | 90-91 | ↓30 | |
Yandi fines | 58 / 59 | Australia | 515-525 | 75-76 | ↓35 | |
PB fines | 61,5 | Australia | 615-625 | 89-91 | ↓35 | |
PB iron ore lump | 62 | Australia | 655-665 | 95-97 | ↓25 | |
Indian fine ore | 63,5 | India | 595-605 | 86-88 | ↓20 | |
Indian fine ore | 63 | India | 585-595 | 85-86 | ↓20 | |
Indian fine ore | 62 | India | 565-575 | 82-83 | ↓20 | |
Indian fine ore | 61 | India | 545-555 | 79-81 | ↓20 | |
Indian fine ore | 59 | India | 380-390 | 55-57 | ↓20 |
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 | 640 | 93 | ↓20 |
damp base (iron content: 66%) | Beipiao | 545 | 79 | ↓15 |
17 percent VAT is excluded in all prices and all prices are ex-warehouse.
$1 = RMB 6.89