Iron ore inventory at Chinese ports edges up slightly
As of January 19, inventory of iron ore at 33 major Chinese ports amounted to 98.90 million mt, up 1.0 million mt or 1.02 percent compared to the inventory level recorded on January 12, as announced by China’s Xinhua News Agency on January 20.
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 68 points, down three points week on week. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 60 points on the date in question, also down three points week on week.
During the given week, imported iron ore prices indicated a downtrend, while transaction activity showed some improvement. Recently, steelmakers have increased their replenishments of stocks, while the continuous declining trend in finished steel prices has meant that support for iron ore prices is weaker. Due to the sluggishness of the domestic finished steel market, domestic miners are pessimistic as regards the future prospects for the iron ore market and more miners have suspended their production activities.
Meanwhile, with the approach of the Spring Festival, even more domestic miners will suspend their production. Considering that January and February are the usual low-production months for domestic miners, it is expected that imported iron ore will attract more orders and will follow a slight uptrend in the coming period.