Posted on 16 Nov 2021
Over November 8-12, prices of domestically-mined iron ore concentrates across China continued to trend south, mainly due to weakening demand among Chinese steel mills on shrinking margins and falling prices of imported iron ore, market sources observed.
As of November 12, the offering price of 66% Fe grade domestic iron ore concentrates in Tangshan, in North China's Hebei declined for the fifth week by another Yuan 35/dmt ($5.5/dmt) on week to reach Yuan 965/dmt EXW and including the 13% VAT - a new low since November 12 2020.
Most mills in Tangshan continued to beat down the prices of domestic ore due to the weak demand, according to a Shanghai-based analyst, who pointed out that last week after a major mill in Tangshan had trimmed its bidding price by Yuan 50/t, other mills followed.
The analyst noted that although the emergency production restrictions on mills in Tangshan were lifted on November 7 after air quality had improved, local steelmakers remained cautious on buying ores, as they were unwilling to ramp up production given the thin margins they were earning or - in some cases - losses.
Moreover, the recent decline in imported ore prices has been steeper than that of domestic ore, making the latter become even less competitive, she added.
Mysteel PORTDEX 62% Australian Fines in Qingdao dropped for the fourth week by Yuan 74/wmt to Yuan 620/wmt FOT and including the VAT as of November 12. The index also hit its 21-month low of Yuan 615/wmt on November 10.
On the other hand, most concentrating mills in Tangshan were eager to sell out their stocks as steelmakers in neighboring areas had reduced their ore buying from Tangshan on higher prices in the region, the analyst noted.
|
Product |
Place of Origin |
Grade |
Price |
Change |
Notes |
|
Concentrate |
Tangshan, Hebei Province |
66% |
965 |
-35 |
3 |
|
Concentrate |
Handan/Xingtai, Hebei Province |
66% |
852 |
-116 |
2 |
|
Concentrate |
Daixian, Shanxi Province |
65% |
820 |
-70 |
1 |
|
Concentrate |
Beipiao, Liaoning Province |
66% |
720 |
-40 |
1 |
|
Concentrate |
Liaoyang, Liaoning Province |
65% |
760 |
-60 |
1 |
|
Concentrate |
Zibo, Shandong Province |
65% |
863 |
-131 |
3 |
|
Concentrate |
Fanchang, Anhui Province |
65% |
950 |
-35 |
3 |
|
Concentrate |
Daye, Hubei Province |
63% |
850 |
- |
3 |
|
Concentrate |
Heyuan, Guangdong Province |
64% |
790 |
- |
3 |
|
Concentrate |
Hainan |
63% |
610 |
-20 |
2 |
|
Notes: 1 - Wet basis, excluding tax; 2 - Dry basis, excluding tax; 3 - Dry basis, including tax. (Unit: Yuan/t) |
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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% |
- |
- |
2 |
|
Hebei Jinxi Iron and Steel Co., Ltd. |
Hebei |
66% |
920 |
-60 |
1 |
|
Handan Iron Steel Co., Ltd. |
Hebei |
66% |
852 |
-116 |
1 |
|
Benxi Iron and Steel Co., Ltd. |
Liaoning |
65% |
910 |
-100 |
3 |
|
Fushun Xinfu Steel Co., Ltd. |
Liaoning |
65% |
910 |
-100 |
3 |
|
Yongfeng Steel Co., Ltd. |
Shandong |
65% |
848 |
-131 |
1 |
|
Xinxing Ductile Iron Pipes Co., Ltd. |
Anhui |
64% |
1,050 |
- |
2 |
|
*Shanxi Xingyuan Group |
Shanxi |
65% |
950 |
- |
5 |
|
Fujian Sangang (Group) Co., Ltd. |
Fujian |
64% |
950 |
-160 |
2 |
|
Guangdong Shaoguan Iron & Steel Co., Ltd. |
Guangdong |
64% |
1,100 |
- |
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 from previous Jiugang Group as of the Dec. 8-12, 2014 session |
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Source:Mysteel Global
