Iron ore inventory decreases slightly at Chinese ports
As of April 6, inventory of iron ore at 33 major Chinese ports amounted to 96.83 million mt, down 70,000 mt or 0.07 percent compared to the inventory level recorded on March 30, as announced by China’s Xinhua News Agency on April 7.
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, down five points 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, down three points week on week.
During the given week, imported iron ore prices have indicated a sharp declining trend, decreasing below $50/mt. Meanwhile, iron ore futures prices at Dalian Commodity Exchange have also declined significantly, exerting a negative impact on the iron ore spot market. Most iron ore traders have started to maintain a wait-and-see stance, with some traders lowering their sales prices, while steelmakers are still unwilling to make purchases.
Finished steel prices in the Chinese domestic market have been characterized by a soft trend, thereby providing insufficient support for imported iron ore prices. It is expected that imported iron ore prices will likely continue their downtrend in the coming week.