Import iron ore prices in China edge up

As of January 10, prices of import iron ore for China have edged up on week-on-week basis, while transaction activity for import iron ore in the past week has been at medium levels. At the same time, traders’ offers of domestic production iron ore have declined slightly 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 $78.2/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $96/mt and prices of the same material are at $88/mt in Beipiao, Liaoning, both including VAT. Prices of domestic production and imported iron ore in China are presented in the following table.

China's central bank announced on January 4 that it will cut the reserve requirement of most banks by 100 basis points, with this development exerting a positive impact on sentiment in the iron ore market. Following the New Year holiday, steel production restrictions have been lifted in some regions of China, and so Chinese steelmakers have been showing an increased willingness to purchase iron ore. Meanwhile, inventories of iron ore are at relatively low levels, which will provide some support for import iron ore prices. However, approaching the Chinese New Year holiday (February 2-10), demand from downstream users will become quieter. It is expected that import iron ore prices in the Chinese market 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 = 6.79 RMB