Facing pressure from high costs, some Chinese steel mills have decided to stop purchasing iron ore on the spot market from overseas suppliers, according to a statement from China's National Development and Reform Commission (NDRC).
The NDRC stated that, because the current spot price of 63 percent grade iron ore has reached about $185/mt, leaving major domestic mills with a profit margin of only around three percent, some Chinese steel mills have decided to stop purchasing imported iron ore on the spot market. In the meantime, iron ore inventories at 19 main Chinese ports are at among their highest levels of the past several years, totaling 84.52 million mt, though they have decreased by 1.56 million mt on week-on-week basis.