Upbeat sentiment in Chinese iron ore market

During the week ending May 7, prices of imported iron ore in China have indicated a rebound, while transaction activity for imported iron ore has been at decent levels. At the same time, traders' offers of domestic production iron ore in Tangshan and Liaoning Province have followed a stable trend.
 
At present, Indian fine ores of 63.5 percent grade are offered at $71/mt at Qingdao port. Meanwhile, quotations of 66 percent iron ore concentrate in Tangshan stand at $72.6/mt and prices of the same material are at $59.7/mt in Beipiao, Liaoning, both excluding VAT.
 
During the given week, domestic steelmakers' inquiries and purchasing volumes for imported iron ore have increased, providing support for prices of imported ore. Meanwhile, iron ore futures prices at Dalian Commodity Exchange have seen a rebound, also exerting a positive influence on the price trend for imported iron ore. Currently, bullish sentiment prevails in the iron ore market. Some iron ore traders have suspended their sales activities in order to wait for better prices. In May, demand from steelmakers is expected to be better than in April, and this will also contribute to the upward trend of prices. It is thought that iron ore prices in the Chinese market will move on a rising trend in the coming week.

17 percent VAT is excluded in all prices and all prices are ex-warehouse.

$1 = RMB 6.21