Iron ore inventory declines at Chinese ports
As of February 16, inventory of iron ore at 33 major Chinese ports amounted to 95.70 million mt, down 1.35 million mt or 1.39 percent compared to the inventory level recorded on February 9 as announced by China’s Xinhua News Agency on February 17.
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 64 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 54 points on the date in question, also up one point week on week.
During the given week, imported iron ore prices have seen slight fluctuations. In order to ensure sufficient iron ore for consumption during the Spring Festival period (February 18-24), steelmakers have replenished their stocks. However, most traders have been absent from the market due to the holiday, resulting in tight supply in the market, thereby contributing to slight rises in transaction prices of iron ore.
It is expected that imported iron ore prices in China will indicate slight rises after the Spring Festival due to tightness on the supply side caused by the holiday. However, rises in imported iron ore prices will probably not last for long as the normal oversupply situation in the iron ore market will again prevail.