Iron ore inventories edge up at Chinese ports
As of July 27, inventory of iron ore at 33 major Chinese ports amounted to 78.23 million mt, up 1.19 million mt or 1.54 percent compared to the inventory level recorded on July 20, as announced by China’s Xinhua News Agency on July 28.
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 51 points, up one point week on week. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 46 points on the date in question, also up one point week on week.
During the given week, the iron ore market in China moved on an upward trend at first and then edged down in the latter part of the week, while overall trading activity has for the most part been relatively lively. In the first half of the given week, iron ore prices indicated a rising trend due to the sharp rise in finished steel prices. In the latter part of the given week, amid a significant decrease in the iron ore futures market, iron ore prices in the spot market have moved down, though most iron ore traders maintained a wait-and-see stance as they have been unwilling to sell at lower prices.
Amid rumors that steelmakers in northern China will cut their outputs as of late August, finished steel prices may indicate a rising trend in the short term, while demand from downstream users will remain slack in the hot summer season and so will not provide support for iron ore prices. Meanwhile, the big overseas miners have issued their second quarter reports, indicating increased outputs, which will exert a negative impact on iron ore prices. It is thought that prices of imported iron ore will likely fluctuate in a downward direction in the coming week due to abundant supply.