Iron ore inventory at Chinese ports edges up slightly
As of January 12, inventory of iron ore at 33 major Chinese ports amounted to 97.90 million mt, up 1.26 million mt or 1.30 percent compared to the inventory level recorded on January 5, as announced by China’s Xinhua News Agency on January 13.
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 71 points, remaining unchanged week on week. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 63 points on the date in question, also remaining stable week on week.
During the given week, imported iron ore started to move sideways following their previous rising trend, with a few prices also indicating a slight declining trend, under the influence of decreasing finished steel prices in the Chinese domestic market amid slack demand and oversupply. Meanwhile, cancellation of the export tax rebate on boron-added steel has exerted a negative impact on the domestic finished steel market. As for the coming weeks in January, finished steel prices in China will likely move down further amid slackening demand due to the approach of the Spring Festival holiday. It is expected that imported iron ore prices in the Chinese market will follow a slight downtrend in the coming week.