More iron ore arrivals impact local and import iron ore prices in China

Thursday, 29 August 2019 17:51:54 (GMT+3)   |   Shanghai
       

During the week ending August 29, prices of import iron ore at Chinese ports have edged down, while transaction activity has been at low-to-medium levels. At the same time, traders’ offers of domestic production iron ore have also moved down in Tangshan and Liaoning Province, with overall transaction activity for domestic production ore at low levels. 

At present, Australian iron ore fines with 62 percent Fe content are offered at RMB 692/mt ($97.7/mt) at Qingdao port, which indicates a RMB 8/mt or $1.1/mt decline over the past week. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at RMB 736/mt ($104/mt), including VAT. Tags for domestic iron ore have fallen more visibly, by RMB 34/mt or $5/mt during the past week. Prices of domestic production and imported iron ore in China are presented in the following table.

Imported iron ore prices

Product name

Port

Iron
content

Place of origin

Truck loaded price
(RMB/mt)

Change
(RMB/mt)

Price
($/mt)

Change
($/mt)

Newman iron ore lump

Qingdao

63/63.5

Australia

755

-40

106.5

-5.6

Brazil fines

63

Brazil

682

-26

96.2

-3.7

Yandi fines

58 / 59

Australia

625

-24

88.2

-3.4

PB Fines

62

Australia

692

-8

97.7

-1.1

PB iron ore lump

62/63

Australia

750

-40

105.8

-5.6

Indian fine ore

63.5

India

648

-27

91.4

-3.8

Indian fine ore

63

India

639

-27

90.2

-3.8

Indian fine ore

62

India

628

-27

88.6

-3.8

Indian fine ore

61

India

613

-27

86.5

-3.8

Indian fine ore

59

India

550

-27

77.6

-3.8

The prices are deal prices in local market.  

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

Nationwide iron ore concentrate prices

Product name

Specification

Market price (RMB/mt)

Change
(RMB/mt)

Price$/mt)

Change
($/mt)

Place of origin

Iron ore concentrate

damp base (iron content: 66 percent)

736

-34

104

-5

Tangshan

Iron ore concentrate

damp base (iron content: 66 percent)

723

-57

102

-8

Beipiao

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

During the given week, more iron ore supplies have arrived at Chinese ports, exerting a negative impact on prices. On August 26, inventory of iron ore at 33 major Chinese ports amounted to 99.98 million mt, up 2.48 percent week on week, according to China's Xinhua News Agency. Steelmakers have been unwilling to build up inventories, and so slow demand has exerted pressure on prices at ports.

However, demand for finished steel will likely improve in September - a traditional peak season for the steel industry - which may prevent iron ore prices from declining sharply, but so far negative sentiments still persist in the market.

$1 = 7.09 RMB


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