Import iron ore prices in China move on rising trend

During the week ending April 4, prices of import iron ore for China have moved on a rising trend, 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 edged down in Liaoning Province and Tangshan, with overall transaction activity for domestic production ore at medium levels. 

At present, Indian fine ores of 63.5 percent grade are offered at $92.7/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $101/mt and prices of the same material are at $99/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, iron ore futures prices at Dalian Commodity Exchange (DCE) have moved up significantly due to the cyclone in Australia, bullish sentiment towards China’s economic development, and the positive impact of the value-added tax rate reduction as of April 1 on the mining industry. Accordingly, import iron ore prices in the spot market have increased. Iron ore supply to Chinese ports is unlikely increase in the near future, which will bolster import iron ore prices. At the same time, steelmakers’ capacity utilization rates have improved in April. However, the VAT rate reduction will likely weaken support for iron ore prices. It is expected 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.  

 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 = 6.72 RMB