In the past week, prices of both iron ore imports and domestic iron ore have remained unchanged in the Chinese market. At present, local steel mills are not booking large cargoes. There is low transaction activity for iron ore imports, while transaction activity for domestic iron ore is slightly better.
As of March 8, the price of Indian 63.5 percent fine ore at Qingdao Port stands at $168/mt, while the price of Australian 62-63 percent lump ore is at $171.2/mt. Meanwhile, in the Tangshan area the price of 66 percent iron ore concentrate is now at $149/mt, while in Beipiao the price of the same material stands at $128.4/mt. Prices of both imported and domestic iron ore in the Chinese market can be viewed in the SteelOrbis price reports section.
The shortage in supply of explosives in the Hebei area is expected to negatively impact local supplies of iron ore. Meanwhile, the cautiousness of steel mills as regards iron ore purchases contributes to a lack of support for domestic iron ore prices. As a result, it is expected that iron ore prices in China will likely indicate some softness in the coming week.