Signs of improvement in Chinese iron ore market

During the week ending March 17, prices of imported iron ore in China have moved on a stable trend, while transaction activity for imported iron ore has been better than in the previous week though it is still on the sluggish side. At the same time, traders' offers of domestic production iron ore in Tangshan and Liaoning Province have followed a stable trend.
 
At present, Indian fine ores of 63.5 percent grade are offered at $70.3/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $78.3/mt and prices of the same material are at $62.3/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China can be viewed in the SteelOrbis price reports section.
 
During the given week, traders have mostly kept their iron ore offer prices stable as semi-finished steel prices have indicated a rebound and as more inquiries have been heard from steelmakers. Confidence levels have improved in the Chinese domestic finished steel market, with steelmakers mostly holding their ex-works prices for finished steel stable, providing a certain degree of support for iron ore prices. At the same time, with finished steel consumption increasing, traders are expecting an upward movement in finished steel prices. It is expected that iron ore prices in the Chinese market will follow a stable trend or indicate a slight rebound in the coming week.