Import iron ore prices in China mostly edge down

As of December 13, prices of import iron ore for China have mostly edged down 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 have increased in Tangshan, though remaining stable in Liaoning Province, 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 $73.1/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $92/mt and prices of the same material are at $85/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 supply has increased as December is the traditional peak season for overseas miners to deliver iron ore, and the increased supply is expected to exert a negative impact on iron ore prices. Meanwhile, blast furnaces’ capacity utilization rates have continued to decrease, which will result in slacker demand for import iron ore. It is expected that import iron ore prices in the Chinese market will soften further in the coming week.

Imported iron ore prices

The prices are deal prices in local market.  

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

Domestic iron ore prices in local Chinese market

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

$1 = 6.88 RMB