Import iron ore prices in China indicate a rising trend

During the week ending June 20, prices of import iron ore for China have moved on an overall upward trend, while transaction activity for import iron ore in the past week has been at medium levels. At the same time, traders’ offers of domestic production iron ore have also indicated an upward trend in Tangshan and Liaoning Province, with overall transaction activity for domestic production ore at medium levels. 

At present, Indian fine ores of 63.5 percent grade are offered at $118.5/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $113/mt and prices of the same material are at $108/mt in Beipiao, Liaoning, both including VAT. Prices of domestic production and imported iron ore in China are presented in the following table.

In the given week, iron ore futures prices at Dalian Commodity Exchange (DCE) have moved up significantly due to reports of possible decreases in iron ore shipments from Australia for July and decreases in inventory levels at Chinese ports. Currently, inventories of iron ore held by traders are at relatively low levels, providing support for iron ore prices. However, steelmakers’ profit margins have shrunk, which will negatively affect demand for iron ore. It is expected that import iron ore prices in the Chinese market will rise slightly in the coming week.

Imported iron ore prices

The prices are deal prices in local market.  

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

Domestic iron ore prices in local Chinese market

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

$1 = 6.85 RMB