Slight rises in import iron ore prices in China

As of September 20, prices of import iron ore for China have mostly increased slightly on week-on-week basis, while transaction activity for import iron ore in the past week has been at medium levels. At the same time, traders’ offers of domestic production iron ore have remained stable in Liaoning Province and Tangshan, with overall transaction activity for domestic production ore at low-to-medium levels. 

At present, Indian fine ores of 63.5 percent grade are offered at $69.3/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $98/mt and prices of the same material are at $94/mt in Beipiao, Liaoning, both including VAT. Prices of domestic production and imported iron ore in China are presented in the following table.

During the first half of the given week, rumors of an easing of production restrictions caused finished steel prices in China to decrease, which exerted a negative impact on import iron ore prices. After the Ministry of Ecology and Environment refuted the rumors in question, sentiment in the iron ore market improved and iron ore prices moved up. Meanwhile, arrivals of import iron ore at Chinese ports have decreased, easing the supply of the import iron ore to the market. With the approach of the Mid-Autumn Day and National Day holidays, steelmakers will likely build up stocks of iron ore, which will provide solid support for import iron ore prices. It is expected that import iron ore prices in the Chinese market will increase in the coming week.

Imported iron ore prices

The prices are deal prices in local market.  

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

Domestic iron ore prices in local Chinese market

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

$1 = 6.85 RMB