Having closed the previous week with a decrease, prices of ex-Australia iron ore of 62 percent Fe content for delivery to China’s Qingdao port have moved up by $0.4/mt on Monday, June 12, compared to last Friday, starting the current week at $54.4-55.5/mt CFR China. As of June 5, inventory of iron ore at 33 major Chinese ports amounted to 117.0 million mt, up 0.37 million mt or 0.32 percent compared to the inventory level recorded on May 22, as announced by China's Xinhua News Agency.
Last week, global iron ore prices decreased by 3.25 percent amid rising iron ore inventories at Chinese ports and softening semi-finished and finished steel prices due to weak demand in China. Iron ore demand in China, the biggest iron ore consumer in the global market, remained at low levels throughout the week.
In the current week, as a result of the recovery in steel futures prices in China, global iron ore prices have started the week with an increase. However, finished steel demand in China is expected to slow down due to the off-season amid hot and rainy weather conditions, which will negatively affect the iron ore market as well. Accordingly, iron ore prices will likely follow a downward trend in the short term, with fluctuations.