Import iron ore prices for China mostly increase

During the week ending December 6, prices of import iron ore for China first declined but later rebounded, with average prices mostly indicating rises 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 decreased in Liaoning Province and Tangshan, 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 $73.7/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $89/mt and prices of the same material are at $85/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, market sentiment has improved after the meeting between Chinese President Xi Jinping and his US counterpart Donald Trump resulted in a freeze on new tariffs and an agreement to hold further talks. These developments have also exerted a positive impact on China’s futures market and stock market, while causing import iron ore prices to switch to an upward trend. Meanwhile, capacity utilization rates of blast furnaces in China have continued to decrease, which will exert negative pressure on import iron ore prices. At the same time, due to heavy pollution in China, especially in the north of the country, steelmakers in affected areas have been requested to reduce production, which will also negatively affect the iron ore market. On the other hand, inventories of import iron ore at ports are at low levels, which will provide support for import iron ore prices. It is expected that import iron ore prices for China will move sideways 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 = 6.90 RMB