Import iron ore prices in China rise slightly

During the week ending October 18, prices of import iron ore for China have increased slightly, 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 remained stable in Tangshan and 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 $71.9/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $97/mt and prices of the same material are at $96/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, Chinese steelmakers have been seeking to conclude purchases of import iron ore, resulting in medium levels of transaction activity. Import iron ore shipments arriving at Chinese ports have improved compared to the previous week, though inventories of import iron ore at the ports are still at relatively low levels. The supply shortage of mainstream fine ores will not be eased in the near term, which will provide support for import iron ore prices. Meanwhile, the current good weather conditions favor increased activity at construction sites, thereby boosting demand for finished steel and iron ore. It is expected that import iron ore prices in the Chinese market will increase 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 = 6.94 RMB