Import iron ore prices in China soften

As of February 21, prices of import iron ore for China have softened 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 continued to edge up 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 $94.3/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $102/mt and prices of the same material are at $98/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 prices for China have softened to more reasonable levels. Meanwhile, the capacity utilization rates of Chinese blast furnaces are now higher as most players have returned to the market after the long holiday. However, the overall increase in steel production has resulted in heavy pollution in northern China, which will likely result in some production cuts for environmental reasons, though no specific details have been heard yet. Meanwhile, steelmakers are expected to replenish their stocks of import iron ore. It is thought that import iron ore prices in the Chinese market will increase 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 = 6.72 RMB