Iron ore inventory decreases slightly at Chinese ports
As of April 20, inventory of iron ore at 33 major Chinese ports amounted to 94.75 million mt, down 1.13 million mt or 1.18 percent compared to the inventory level recorded on April 13, as announced by China’s Xinhua News Agency on April 21.
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 three points week on week. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 45 points on the date in question, rising by four points week on week.
During the given week, iron ore prices have rebounded slightly, influenced by the sharp rise in iron ore futures prices at Dalian Commodity Exchange. More Chinese miners have suspended their production, forcing domestic steelmakers to focus more on overseas iron ore purchases, and this has provided some support for imported iron ore prices, easing the bearish sentiment among iron ore market participants. However, no significant improvement has been observed in the Chinese domestic finished steel market, with finished steel prices unlikely to increase in the coming period, which will limit the room for increases in iron ore prices. It is expected that iron ore prices in the Chinese market will continue to indicate upward movement in the coming week, though strong increases are unlikely to be seen