Steelmakers slow to conclude purchases in Chinese iron ore market

During the week ending January 22, prices of imported iron ore in China have indicated an overall stable trend, while transaction activity for imported iron ore has been slack. At the same time, traders' offers of domestic production iron ore in Tangshan and Liaoning Province have also followed a stable trend, while transaction activity for domestic iron ore has likewise been sluggish.
 
At present, Indian fine ores of 63.5 percent grade are offered at $77.4/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $77.4/mt and prices of the same material are at $66.1/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.
 
During the given week, although they have been facing pressure from steelmakers, traders and miners have insisted on maintaining their iron ore prices at unchanged levels. Small miners with high costs have halted their mining activities, providing some support for domestic production iron ore prices. In general, steelmakers are unwilling to purchase at current price levels, which has resulted in declines in actual transaction volumes. It is expected that iron ore prices in the Chinese market will indicate a slight downtrend in the coming week as steelmakers, whose profit margins have narrowed due to declining finished steel prices, will try to obtain lower prices for iron ore.