Prices of ex-Australia iron ore of 62 percent Fe content for delivery to China’s Qingdao port closed last week with a sideways movement, while they have started the current week at $91.3-91.7/mt CFR China, down $0.8/mt compared to last Friday, March 17. As of March 13, inventory of iron ore at 33 major Chinese ports amounted to 117.17 million mt, up 1.12 million mt or 0.97 percent compared to the inventory level recorded on March 6, as announced by China's Xinhua News Agency.
Last week, a slight recovery in import iron ore purchases in China and the upward trend of the futures markets contributed to two percent growth in global iron ore prices. However, iron ore inventories at Chinese ports continued to increase, despite increased purchases of the iron ore stocks built up at the ports.
This week, as a result of the high level of iron ore inventories at Chinese ports, import iron ore prices have come under pressure and iron ore demand has slackened, resulting in a softening of prices. Since iron ore inventories at Chinese ports are at historically high levels, buyers have adopted a wait-and-see stance, while market sources expect Chinese semi-finished and finished steel demand to see a seasonal recovery. Accordingly, iron ore prices are unlikely to see a significant decline despite the high level of inventories.