Import iron ore prices mostly move down in China

During the week ending June 6, prices of import iron ore for China have mostly moved down 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 moved on a decreasing trend in Tangshan, though remaining stable in Liaoning Province, with overall transaction activity for domestic production ore at low-to-medium levels. 

At present, Indian fine ores of 63.5 percent grade are offered at $108.4/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, iron ore futures prices at Dalian Commodity Exchange (DCE) have moved on a downtrend, exerting a negative impact on import iron ore prices. Steelmakers’ profitability has shrunk sharply, which will force them to lower their capacity utilization rates and slacken the demand for import iron ore. However, the inventory level of import iron ore at ports has decreased, which will provide certain support to iron ore prices. 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