According to the Xinhua-China Iron Ore Price Index issued by China's state-owned Xinhua News Agency, in the week ending May 21 the import price index for 63.5 percent Fe content iron ore in China stood at 138 points, down eight points week on week, while the import price index for 58 percent Fe content iron ore stood at 116 points, down nine points week on week. As of May 21, iron ore inventory at China's ports totaled 98.03 million mt, up 210,000 mt week on week.
As stated by Xinhua News Agency, iron ore demand in China is currently lower than expected due to sluggish growth on the downstream side. Meanwhile, miners are lowering their expectations for Chinese iron ore demand. The major Chinese steel mills have cut their ex-work prices, and iron ore purchases by the mills have declined. Pessimism prevails among iron ore traders, and so most of them are adopting a-wait-and-see attitude. Amid slack demand from downstream industries, the Chinese iron ore market is expected to decline further in the coming period.