Heibei Tangshan iron ore fines price continues to rise

14 July 11 – Recently, the iron ore fines price in Tangshan continues to rise. The current price for iron ore fines 66% is RMB1, 050-1, 060/wt VAT excluded ex works, up by RMB20-30/t compared with that of this Monday. Insiders pointed out that the iron ore fines price will continue to move up in the near future due to continuously uprising steel billet price. 

A source from iron ore purchasing department of Tangshan Songjong Iron and Steel indicated that the current price for iron ore fines 66% is RMB1, 360/t VAT included delivered, up by RMB20-30/t compared with that of the past several days. With a daily consumption volume of around 14, 000t for internal and external ores, he purchases about 3, 000t everyday and recently has a normal purchase condition. 

At present, the steel billet price appears attractive. For example, the current price for steel billet Q235 150*150 in Tangshan is RMB4, 420-4, 430/t Ex works by cash payment, up by RMB90-100/t compared with late last week. Furthermore, some mine owners have relatively reduced supplies and even stopped production due to unsatisfactory iron ore fines price recently, which causes that some steel mills keep nervous about purchasing. Therefore, the source expected that the iron ore fines price may rebound slightly in the near future. 

A worker from Tangshan Shuangyou Selecting Mine Co., Ltd noted that the current price for iron ore fines 66% is RMB1, 080/wt VAT excluded Ex works, up by RMB20/t compared with that of last weekend. With a daily production volume of 500-600t, the company recently has around 10, 000t in stock and normal shipments. 

In the near future, the overseas ore price rebounds slightly. For example, the current price for Indian iron ore fines 63.5% is USD179-180/t CNF China, up by USD2/t compared with that of last weekend. The iron ore inventory achieves as high as 96, 31 million tons in the ports (34 ports), but it can only maintain production of the national steel mills for around one month. If the mine producers continue to control the shipments, the ore prices will move up, so the source pointed out that the uprising overseas ore price can promote the iron ore fines price in Tangshan to go upward.

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