Iron ore inventory decreases slightly at Chinese ports
As of December 8, inventory of iron ore at 33 major Chinese ports amounted to 104.17 million mt, down 650,000 mt or 0.62 percent compared to the inventory level recorded on December 1, as announced by China’s Xinhua News Agency.
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 71 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 63 points on the date in question, remaining stable week on week.
At the very beginning of the given week, slack transaction activity contributed to a slight decrease in imported iron ore prices in China, while traders maintained a wait-and-see stance. Later in the week, imported iron ore prices moved up due to the influence of rises in iron ore futures prices. Accordingly, domestic steelmakers started to conclude purchases, resulting in improved transaction activity.
However, the overall demand and supply situation has not shown any improvement, with oversupply continuing to affect the trend of imported iron ore prices. It is thought that imported iron ore prices are unlikely to indicate any significant upward movement during the winter, amid the off-season for finished steel demand.