As of May 23, prices of import iron ore for China have moved up significantly 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 moved on a rising trend in Tangshan and in Liaoning Province, with overall transaction activity for domestic production ore at medium levels.
At present, Indian fine ores of 63.5 percent grade are offered at $106.8/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $107/mt and prices of the same material are at $105/mt in Beipiao, Liaoning, both including VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
On May 17, Brazilian miner Vale warned of a possible dam break at another one of its mines, thereby increasing concerns regarding iron ore supply in the global market. Accordingly, iron ore futures prices at Dalian Commodity Exchange (DCE) moved up sharply, exerting a positive impact on iron ore prices in the spot market. Currently, steelmakers’ production is at relatively high levels, providing support for the iron ore market due to strong demand. At the same time, inventories of import iron ore at Chinese ports and at steelmakers are on the low side. As a result, steelmakers are expected to replenish stocks in the near future. It is expected that import iron ore prices in the Chinese market will fluctuate at the current high levels in the coming week.
Imported iron ore prices
|
Product Name |
Name of Port |
IronContent % |
Place of origin |
Truck loaded price (RMB/mt) |
Price($/mt) |
Weekly Change (RMB/mt) |
|
Newman iron ore lump |
Qingdao |
63/63.5 |
Australia |
932-942 |
133-134 |
↑25 |
|
Brazil fines |
63,5 |
Brazil |
790-800 |
106-108 |
↑59 |
|
|
Yandi fines |
58 / 59 |
Australia |
688-698 |
94-96 |
↑41 |
|
|
PB fines |
61,5 |
Australia |
726-736 |
98-99 |
↑52 |
|
|
PB iron ore lump |
62 |
Australia |
928-938 |
132-133 |
↑25 |
|
|
Indian fine ore |
63,5 |
India |
733-743 |
97-99 |
↑60 |
|
|
Indian fine ore |
63 |
India |
721-731 |
95-97 |
↑60 |
|
|
Indian fine ore |
62 |
India |
706-716 |
93-95 |
↑60 |
|
|
Indian fine ore |
61 |
India |
681-691 |
90-91 |
↑60 |
|
|
Indian fine ore |
59 |
India |
650-660 |
85-87 |
↑57 |
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
|
Product |
Spec. |
Place of Origin |
Market price excluding tax (RMB/mt) |
Price ($/mt) |
Weekly Change (RMB/mt) |
|
Domesticiron oreconcentrate |
damp base (ironcontent: 66%) |
Tangshan |
640 |
94 |
↑40 |
|
damp base (ironcontent: 66%) |
Beipiao |
635 |
93 |
↑30 |
13 percent VAT is excluded in all prices and all prices are ex-warehouse.
$1 = 6.92 RMB