Steel mills cautious about purchases in Chinese iron ore market

Thursday, 06 November 2014 15:11:30 (GMT+3)   |   Shanghai
       

During the week ending November 6, prices of imported iron ore in China have continued to indicate a downtrend, with larger declines in particular seen for low Fe-content iron ore, while transaction activity for imported iron ore has decreased somewhat compared to the previous week and is now on the sluggish side. At the same time, traders' offers of domestic production iron ore in Tangshan has continued to soften, while offers of domestic production iron ore in Liaoning Province have remained unchanged, with transaction activity for domestic iron ore generally slack.
 
At present, Indian fine ores of 63.5 percent grade are offered at $89.7/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $96.2mt and prices of the same material are at $78.3/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.
 
Domestic steelmakers have been cautious about purchasing imported iron ore materials in the past week, with this caution contributing to price declines for imported iron ore in China, especially for fine ores. In the Chinese market, supplies of high Fe-content lump ore have been on the short side, with prices of lump ore accordingly remaining stable. Previously, traders had been quite optimistic during the peak season in September and October, while in November traders' confidence has started to fade. Meanwhile, the international iron ore market is characterized by oversupply, which will have a negative impact on prices of imported iron ore in China. It is expected that iron ore prices in the Chinese market will move on a downtrend in the coming seven days especially given the weakness of the finished steel market.

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