During the week ending December 8, import iron ore prices in China have halted their downtrend of the previous two weeks and have even indicated a slight increase. Import iron ore prices from Australia, India and Brazil have risen by RMB 10-20/mt ($1.5-3.5/mt) on week-on-week basis in the past week.
At present, Indian fine ores of 63.5 percent grade are offered at $167.5/mt at Qingdao port, while Australian lump ores of 62 percent or 63 percent grade also priced at $167.5/mt. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan have climbed by RMB 10-20/mt ($1.5-3.5/mt) week on week to $148.5/mt, while the price of the similar product in Beipiao has remained unchanged at $130.7/mt, both excluding VAT. Import and domestic iron ore prices in China can be viewed in the SteelOrbis price reports section.
The slight uptrend in China's iron ore market in the past week can be considered as a correction following the previous two weeks of downward movement. Despite the increase in prices, domestic steel mills still prefer to monitor the market rather than increase their purchase volumes. Accordingly, there has not been much improvement in activity levels in China's iron ore market. In addition, the cold weather has also been exerting a negative influence on market activity. As regards the short-term outlook, the Chinese iron ore market is expected to remain generally weak despite the temporary rebound of prices.