Improved sentiment and activity in iron ore market in China

During the week ending July 14, prices of import iron ore in China have continued their upward trend, while transaction activity for import iron ore has improved and is now at decent levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and in Liaoning Province have also increased, with transaction activity for domestic production ore having improved and currently at medium levels.

At present, Indian fine ores of 63.5 percent grade are offered at $56.9/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $62.9/mt and prices of the same material are at $52.4/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.

During the given week, the rising trends of domestic prices of semi-finished and finished steel have contributed to the rises in iron ore prices. Meanwhile, prices of other raw materials, including coke and scrap, have also increased, providing a certain degree of support for iron ore prices. Steelmakers have stepped up their inquiries for import iron ore and transaction activities for import material have improved. At the same time, steelmakers have increased their purchases of domestic production iron ore, exerting a positive impact on prices of domestic ore. Currently, bullish sentiment prevails as regards finished steel prices and this positive sentiment will likely continue to be observed in the week ahead. It is thought that iron ore prices in the Chinese market will likely move on a slight uptrend in the coming week. 

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

 

 

 

  

The prices are deal prices in local market.                                          

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

$1 = RMB 6.68