Import iron ore prices in China move on a rising trend

During the week ending January 31, prices of import iron ore for China have moved on an upward trend, while transaction activity for import iron ore in the past week has been at low levels. At the same time, traders’ offers of domestic production iron ore have remained stable in Liaoning Province and Tangshan, with overall transaction activity for domestic production ore at low levels.

At present, Indian fine ores of 63.5 percent grade are offered at $90.7/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $98/mt and prices of the same material are at $93/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, due to the dam collapse in Brazil, import iron ore prices in the Chinese market have risen significantly, while transaction activity is now at low levels due to the approaching Chinese New Year holiday (February 2-10) as most steelmakers have already completed their stock replenishment ahead of the holiday. Market players think the import iron ore prices will likely edge up further ahead of the holiday, while activity is expected to remain slack.

 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 = 6.71 RMB