Domestic Iron Ore Prices Rose this Week, and to Grow Further next Week

SHANGHAI, May 19 (SMM) - Iron ore price changes across China last week: Tangshan city, Hebei province: up 5-10 yuan/mt in Qian'an city and Qianxi county; West Liaoning: up 15-20 yuan/mt in Chaoyang city, Beipiao city and Jianping county; East China: up 5-10 yuan/mt.

In Tangshan, the prices were on the rise affected by the continuous increase in overseas futures prices. The mines and dressing plants as well as spot traders took a wait-and-see approach amid low market supply. However, the demand from steel mills remained high. SMM believes that the iron ore prices in Tangshan will climb further thanks to the steel mills’ restocking.

In west Liaoning, iron ore concentrate prices increased slightly. The supply tightness and growing overseas futures prices boosted the confidence of mines and dressing plants. The local mines and dressing plants offered higher quotes than the market prices. On the demand side, steel mills and traders with low profit margins were less willing to raise their purchase prices, and they were more cautious about restocking goods at highs. The demand from steel mills will be high in the short term as the mills are unlikely to cut their production. It is expected that the local iron ore concentrate prices will increase further.

In east China, the large mines maintained normal production this week, and they shipped goods based on the actual output. Following the rise in the average price of imported iron ore this week, it is expected that the domestic iron ore prices in east China will go up as well next week.

The buyers and sellers are wrestling over the prices, but the downstream companies may purchase some spots, thus pushing up the iron ore prices.