During the week ending December 5, some slight upticks have been witnessed in prices of imported iron ore in China. The prices of Australian and Brazilian iron ore in China have indicated minor increases, while prices of Indian origin ore have followed a stable trend. Meanwhile, sideways movement has been observed in prices of domestic production iron ore in Tangshan and Liaoning.
At present, Indian fine ores of 63.5 percent grade are offered at $153.6/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $143.8/mt, and prices of the same material are at $120.9/mt in Beipiao, both excluding VAT. Prices of domestic production and imported iron ore in China can be viewed in the SteelOrbis price reports section.
In the given week, due to low inventory on the steel mills' side and their willingness to restock, iron ore traders in the Chinese market, especially those dealing with imported iron ore, have tried to push up prices to see whether the market will accept increased price levels. However, the upticks by traders have not prompted steel mills to conclude more bookings, with inquiries and transaction activity instead being on the quiet side. On the other hand, steel mills intend to increase steel prices to improve their current low profitability, thereby providing a certain degree of support for iron ore prices. Iron ore traders have stated that they will insist on higher iron ore prices and so it is thought that the Chinese iron ore market will likely firm up in the coming week.