Import iron ore prices in China move up sharply

During the week ending May 30, prices of import iron ore for China have continued to move up sharply, 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 on a rising trend in Tangshan, though remaining stable in 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 $110/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $109/mt and prices of the same material are at $105/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, Brazil’s National Mining Agency (ANM) on May 27 announced that the northern slope of Vale’s Soco mine located in the Congo was moving at a speed of 15.5 cm per day and could collapse at any time. This warning has raised market participants’ concerns regards iron ore supply in the coming period. Due to rapid growth in newly-started construction work in China, capacity utilization rates of domestic blast furnaces are observed to be at high levels. Currently, import iron ore prices are at elevated levels, while iron ore shipments are unlikely to recover and demand from downstream users is not expected to maintain its current strength. It is expected that import iron ore prices in the Chinese market will fluctuate within a limited range 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 = 6.91 RMB