During the week ending December 12, prices of imported iron ore in the Chinese market have mostly been stable, though with some slight upticks also seen. Meanwhile, prices of domestic production iron ore in Liaoning are unchanged, while a very minor uptrend has been witnessed in domestic production ore prices in Tangshan.
At present, Indian fine ores of 63.5 percent grade are offered at $155.2/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $144.8/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, although iron ore inventory has not been high on the steel mills' side, inquiries and transaction activities for iron ore have not indicated any significant improvement. On the one hand, the steel mills have postponed their purchases of iron ore in order to avoid pushing up iron ore prices. On the other hand, the mills are unwilling to increase their raw material inventories due to the relative tightness of liquidity coming towards the end of the year. Overall, it is thought that the Chinese iron ore market will likely just show slight fluctuations in the coming week against the backdrop of quiet activity in the finished steel and raw material markets.