As of June 1, inventory of iron ore at 33 major Chinese ports amounted to 83.74 million mt, down 0.5 million mt or 0.59 percent compared to the inventory level recorded on May 25, as announced by China's Xinhua News Agency on June 2.
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 61 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 55 points on the date in question, increasing by one point week on week.
In the early part of the given week, prices of imported iron ore indicated a slight rising trend due to the rebound seen in iron ore futures at Dalian Commodity Exchange. Meanwhile, there were some shortages of iron ore supplies at ports, which provided support for iron ore prices in the spot market. However, in the latter part of the given week, due to slack transaction activities and slight declines in the finished steel market, iron ore prices edged down again.
Due to their poor sales activities, Chinese steelmakers have been exerting downward pressure on iron ore prices. It is expected that iron ore prices in the Chinese market will likely indicate a slight downtrend again as bearish sentiment has started to prevail in the finished steel market.