Import iron ore prices in China indicate upward trend

As of May 9, prices of import iron ore for China have edged up on week-on-week basis, 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 moved up in Liaoning Province and Tangshan, with overall transaction activity for domestic production ore at low-to-medium levels.

At present, Indian fine ores of 63.5 percent grade are offered at $98.4/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $107/mt and prices of the same material are at $106/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, import iron ore prices have moved upwards as steelmakers have been replenishing stocks and as Vale’s Brucutu mine in Brazil was not allowed to resume production. Although iron ore supply has improved, it is still at relatively low levels, and this has bolstered support for import iron ore prices. Meanwhile, steelmakers’ capacity utilization rates are at high levels, exerting a positive impact on demand for import iron ore. It is expected that import iron ore prices in the Chinese domestic market will move up further 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 = 6.82 RMB