Iron ore prices in China continue to trend down

During the week ending September 6, import iron ore prices in China have continued to fall, with larger decreases seen for ex-India material and smaller decreases in offers given by Australian and Brazilian iron ore suppliers. Domestic production iron ore prices in China have also declined in the past week.
 
At present, Indian fine ores of 63.5 percent grade are offered at $110.4/mt at Qingdao port. Meanwhile, the quotation of 66 percent iron ore concentrate in Tangshan stands at $119.9/mt, while the price of the same material stands at the level of $97.8/mt in Beipiao, both excluding VAT.
 
In the given week, spot iron ore supplies which had piled up at Chinese ports were sold at large discounts, leading to a further decrease in Indian offers. At the same time, as some traders purchased iron ore from Australia and Brazil on the futures market, prices of iron ore offered by these regions indicated a smaller decline. With no sign of a recovery, it is expected that in the coming period iron ore prices in China will maintain their soft trend.