Iron ore inventory trends up at Chinese ports

Wednesday, 11 December 2013 17:53:12 (GMT+3)   |   Shanghai
       

As of December 9, inventory of iron ore at 25 major Chinese ports amounted to 84.819 million mt, indicating an increase of 1.049 million mt or 1.25 percent week on week, as announced by China's Xinhua News Agency on December 10.
 
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 138 points, up three points from one week earlier. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 125 points on the date in question, up three points week on week.
 
Imported iron ore prices in the Chinese market have indicated increases. In the given week, the iron ore futures market in China has seen stronger price increases, while traders in the spot market have been reluctant to sell and prefer to wait for further increases at the current time. Some tightness is still observed in terms of availability of iron ore at Chinese ports, resulting in steady increases in transaction prices. Meanwhile, the mills have not been so active in concluding purchases due to the relative tightness of liquidity coming towards the end of the year. Slack demand in the finished steel market has also been exerting some downward pressure on finished steel prices, though mills have been insisting on keeping their steel prices firm due to the higher prices of iron ore.
 
Although an upward trend prevails in the import iron ore market at the current time, insufficient demand in the downstream market, the gradual weakening of demand for finished steel in winter and traders’ unwillingness to stock up have all contributed to the sluggishness in the overall iron ore market. It is thought that the uptrend in the import iron ore market in China may continue in the coming days, though at a slower pace.

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