Iron ore prices rose in Northern China Tangshan since this week began. Miners and beneficiation plants raised quotations by CNY 10 to CNY 20, as local mills need to restock prior to Chinese New Year in two weeks time.

Mills purchase prices, however remained steady at CNY 1,250 in Tangshan and Qiam, CNY 1,230 in Qianxi, CNY 1,240 in Zunhua which can hardly get them supplies from miners.

According to our contacts Chinese ore inventories at mills are at 15 day level. As holiday suspension usually lasts 20 days. We see a strong reason for mills to replenish stocks before or after Chinese New Year.

Miners and distributors said uncentainties of the market trend makes high stocks risky. On the other hand, they need to retrieve fund from their stocks. If mills can raise their prices by CNY 20 to CNY 30, miners would be very happy to supply, according to market participants.

(Source: www.steelhome.cn/en)
China steel information centre and industry database