Import iron ore prices in China indicate upward trend

As of May 16, 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 low-to-medium levels. At the same time, traders’ offers of domestic production iron ore have moved on a stable trend in Tangshan, while softening slightly 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 $98.5/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $105/mt and prices of the same material are at $103/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, import iron ore prices for China indicated slight rises as Vale was ordered to suspend wet iron ore processing at its Brucutu mine in Brazil, exerting a negative impact on supply and providing support for prices. Chinese steelmakers have mostly been consuming their iron ore stocks in order to reduce inventories and will likely only conclude purchases in line with their needs in the coming week. Since the traditional peak season in China in March and April is now over, the demand from downstream users will be slacker in the coming period. At the same time, crude steel output in the first quarter was at relatively high levels, while this situation is unlikely to continue in the period ahead. It is expected that import iron ore prices in the Chinese market will move down in the coming week.

Imported iron ore prices

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 

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

$1 = 6.88 RMB