Import iron ore prices in China indicate slight fluctuations

During the week ending April 19, prices of import iron ore for China have mostly just indicated slight fluctuations, while transaction activity for import iron ore in the past week has improved and is now at medium levels. At the same time, traders’ offers of domestic production iron ore have decreased in Tangshan, though remaining stable in Liaoning Province, with overall transaction activity for domestic production ore at low levels. 

At present, Indian fine ores of 63.5 percent grade are offered at $69.5/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $87/mt and prices of the same material are at $86/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, since domestic steelmakers have gradually increased their production, demand for import iron ore has been better. Accordingly, steelmakers with low inventories of import iron ore have started to replenish their stocks, while those with high inventories are still mostly consuming their own stocks. However, though demand has improved, import iron ore supply is sufficient, which will limit the room for the upward movement of prices. It is thought that import iron ore prices in the Chinese market will edge up slightly in the coming week.

Imported iron ore prices

 The prices are deal prices in local market.  

17 percent VAT is included in all prices and all prices are ex-warehouse.

Domestic iron ore prices in local Chinese market 

17 percent VAT is excluded in all prices and all prices are ex-warehouse.

$1 = RMB 6.27