WEEKLY: China’s iron ore concentrate price up further
Last week, prices of imported iron ore at ports and seaborne both jumped to a five-year high, which made domestic iron ore more cost-effective. Domestic miners also lifted offer prices of concentrates but their increase was far more sedate compared with the former.
For instance, as of May 17, Mysteel’s price index for 62% Australian iron ore fines port inventories surged by Yuan 32/wmt on week to top Yuan 723/wmt FOT Qingdao and including the 13% VAT, equivalent to Yuan 803.3/dmt and hitting a five-year high.
By contrast, offer prices for 66% Fe content concentrates in Tangshan in North China’s Hebei province grew by a slight Yuan 10/dmt on week to Yuan 815/dmt EXW and including 13% VAT.
As a result, those Chinese steelmakers which had replenishment demand for ore were willing to accept miners’ offers and raised their buying prices of concentrates while miners’ stocks were at low level. For example, mills in Tangshan stepped up consumption of concentrates for pelletizing in shaft furnaces when they were obliged to restrain operations on their sintering machines recently, a survey respondent said.
Although domestic miners actively ramped up concentrates production, their inventories nonetheless steadily declined to a low level because of robust demand from steel mills – another reason for the prices of concentrates to firm at high level, Mysteel Global understands.
Mysteel’s bi-weekly survey showed that stocks of iron ore concentrates at the 186 surveyed mining companies declined for a third straight survey period during April 26-May 9, dipping by another 136,200 tonnes or 3.4% during the period to 3.9 million tonnes, a two-month low.
Written by Zhiyao Li, lizy@msyteel.com
Edited by Russ McCulloch, russ.mcculloch@mysteel.com
Table 1: China’s iron ore concentrate prices in major production bases
Product |
Place of Origin |
Grade |
Price |
Change |
Notes |
Concentrate |
Tangshan, Hebei Province |
66% |
815 |
+10 |
3 |
Concentrate |
Handan/Xingtai, Hebei Province |
66% |
835 |
+6 |
2 |
Concentrate |
Daixian, Shanxi Province |
65% |
580 |
+10 |
1 |
Concentrate |
Beipiao, Liaoning Province |
66% |
625 |
-10 |
1 |
Concentrate |
Liaoyang, Liaoning Province |
65% |
615 |
+10 |
1 |
Concentrate |
Fushun, Liaoning Province |
66% |
735 |
+20 |
3 |
Concentrate |
Zibo, Shandong Province |
65% |
850 |
+15 |
3 |
Concentrate |
Fanchang, Anhui Province |
65% |
810 |
- |
3 |
Concentrate |
Daye, Hubei Province |
63% |
690 |
- |
3 |
Concentrate |
Heyuan, Guangdong Province |
64% |
630 |
- |
3 |
Concentrate |
Hainan |
63% |
550 |
+5 |
2 |
Notes: 1 - Wet basis, excluding tax; 2 - Dry basis, excluding tax; 3 - Dry basis, including tax. (Unit: Yuan/t) |
Table 2: China’s steel mills’ procurement prices in major areas
Steel Company Name |
Region |
Grade |
Price |
Change |
Notes |
Jianlong Steel Co., Ltd. |
Hebei |
65% |
720 |
+10 |
2 |
Hebei Jinxi Iron and Steel Co., Ltd. |
Hebei |
66% |
815 |
+10 |
1 |
Handan Iron Steel Co., Ltd. |
Hebei |
66% |
830 |
- |
1 |
Xinxing Ductile Iron Pipes Co., Ltd. |
Hebei |
65% (acid) |
820 |
- |
2 |
Benxi Iron and Steel Co., Ltd. |
Liaoning |
65% |
720 |
- |
3 |
Fushun Xinfu Steel Co., Ltd. |
Liaoning |
66% |
740 |
+20 |
3 |
Yongfeng Steel Co., Ltd. |
Shandong |
65% |
860 |
- |
1 |
Xinxing Ductile Iron Pipes Co., Ltd. |
Anhui |
64% |
850 |
+5 |
2 |
*Shanxi Xingyuan Group |
Shanxi |
65% |
510 |
+10 |
5 |
*Shanxi Liheng Iron & Steel Co., Ltd. |
Shanxi |
65% |
650 |
+10 |
2 |
Fujian Sangang (Group) Co., Ltd. |
Fujian |
64% |
705 |
- |
2 |
Guangdong Shaoguan Iron & Steel Co., Ltd. |
Guangdong |
64% |
584 |
- |
1 |
Xinyu Iron & Steel Co., Ltd. |
Jiangxi |
64% |
584 |
- |
1 |
Notes: 1 - Dry basis, including tax, payment by acceptance, delivery; 2 - Dry basis, including tax, cash payment, delivery; 3 - Dry basis, including tax, payment by acceptance, delivery, base price; 4 – Dry basis, excl. tax, delivery, base price; 5 - Wet basis, excl. tax, no delivery (Unit: Yuan/t) *Sample objects here are altered to Shanxi Xingyuan and Shanxi Liheng from previous Jiugang Group and Changzhi Steel, as of the Dec. 8-12, 2014 session |
NBS: China's ROM iron ore output drops 2.9% YoY in H1
Jul 22, 2022 11:30
WEEKLY: China's domestic iron ore conc prices firm
Jun 06, 2022 19:00
WEEKLY: China's domestic iron ore prices decline
May 30, 2022 17:30
WEEKLY: China's domestic iron ore prices ease further
May 23, 2022 18:45
NBS: China Jan-Apr ROM iron ore output dips 0.9% on year
May 19, 2022 12:30