Iron ore inventory decreases slightly at Chinese ports
As of April 13, inventory of iron ore at 33 major Chinese ports amounted to 95.97 million mt, down 860,000 mt or 0.89 percent compared to the inventory level recorded on April 6, as announced by China’s Xinhua News Agency on April 14.
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 48 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 41 points on the date in question, also remaining stable week on week.
During the given week, iron ore prices have indicated minor fluctuations, while transaction activity at ports has been slack. While most traders hold relatively high-cost stocks, the price of imported iron ore has dropped to $48/mt and buyers want to buy lower-priced ores. This situation has contributed to the sluggishness of activity. At the same time, finished steel prices in the Chinese domestic market have moved on a declining trend as inventory levels have risen after the Tomb Sweeping Holiday (April 5-6). While some steelmakers have limited their production to some extent, oversupply still exists in the Chinese finished steel market, while some signs of a rebound have been seen in the futures market. It is expected that iron ore prices will move sideways in the coming week.