Import iron ore prices soften in Chinese market, local output prices stable

During the week ending September 27, import iron ore prices to China have dropped down slightly following the steep rises in the previous couple weeks. As compared to a week ago, offers of Indian, Australian and Brazilian iron ore have on average fallen by $5/mt'. Meanwhile, domestic production iron ore prices in China have remained unchanged.
 
At present, Indian fine ores of 63.5 percent grade are offered at $131.7/mt at Qingdao port. Meanwhile, the quotation of 66 percent iron ore concentrate in Tangshan stands at $127/mt, and the price of the same material is $100/mt in Beipiao, both excluding VAT. 
 
Following the restocking activities of the previous two weeks, inquiries and bookings for iron ore have decreased in China. Small traders have slightly cut their offers in order to attract buyers. Larger traders are relatively optimistic as regards the prospects for the post-holiday market. It is expected that iron ore prices in China will trend sideways in the near future.