During the week ending September 17, prices of imported iron ore in China have indicated a stable trend, while transaction activity for imported iron ore continued to be at decent levels. At the same time, traders’ offers of domestic production iron ore in Tangshan and Liaoning Province have moved on a stable trend, while overall demand for domestic production iron ore has been better than the previous week.
At present, Indian fine ores of 63.5 percent grade are offered at $69.7/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $69.1/mt and prices of the same material are at $56.5/mt in Beipiao, Liaoning, both excluding VAT. Prices of domestic production and imported iron ore in China are presented in the following table.
During the given week, declines in finished steel prices in the domestic market dragged down iron ore futures prices. However, the decent iron ore transaction activity in the spot market and less pressure in the inventory aspect gave certain support to the import iron ore prices for maintaining a stable trend.
Currently, finished steel prices have failed to meet the expected rise in the traditional peak season of September, which exerted negative pressure on iron ore prices. It is thought that iron ore prices will likely move on a declining trend in the coming period.
Domestic iron ore prices in local Chinese market
| Product | Spec. | Place of Origin | Market price excluding tax (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
| Domestic iron ore concentrate | damp base (iron content: 66%) | Tangshan | 440 | 69 | 0 |
| damp base (iron content: 66%) | Beipiao | 360 | 57 | 0 |
17 percent VAT is excluded in all prices and all prices are ex-warehouse.
Imported iron ore prices in local Chinese market
| Product Name | Name of Port | Iron Content % | Place of origin | Truck loaded price (RMB/mt) | Price($/mt) | Weekly Change (RMB/mt) |
| PB iron ore lump | Qingdao | 63/63.5 | Australia | 570-590 | 89-93 | 0 |
| Brazil fines | 63,5 | Brazil | 450-470 | 71-74 | 0 | |
| Yandi fines | 58 / 59 | Australia | 410-420 | 64-66 | 0 | |
| PB Fines | 62 | Australia | 470-490 | 74-77 | 0 | |
| PB iron ore lump | 61.5 | Australia | 440-450 | 69-71 | 0 | |
| Indian fine ore | 63.5 | India | 440-450 | 69-71 | 0 | |
| Indian fine ore | 63 | India | 430-440 | 66-69 | 0 | |
| Indian fine ore | 62 | India | 410-430 | 64-66 | 0 | |
| Indian fine ore | 61 | India | 400-410 | 63-64 | 0 | |
| Indian fine ore | 59 | India | 370-390 | 58-61 | 0 |
The prices are deal prices in local market.
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.37