Import iron ore prices in China mostly move on rising trend

During the week ending April 26, prices of import iron ore for China have mostly moved on an 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 remained stable in Tangshan and in Liaoning Province, with overall transaction activity for domestic production ore at low levels. 

At present, Indian fine ores of 63.5 percent grade are offered at $71.2/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $86/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, finished steel prices in China have moved on an upward trend, exerting a positive impact on import iron ore prices. Chinese steelmakers have been more eager to conclude purchases of import iron ore. However, their import iron ore inventories are at relatively high levels and so they may not replenish their stocks in large quantities. At the same time, with prices of import iron ore moving up, steelmakers have started to become more cautious. In addition, in the second quarter, import iron ore supplies will increase, which will negatively affect import iron ore prices. It is thought that import iron ore prices in the Chinese market will likely move sideways in the coming week.

Imported iron ore prices

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

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

$1 = RMB 6.32