Having closed the previous week with an increase, prices of ex-Australia
iron ore of 62 percent Fe content for delivery to
China's Qingdao port have moved down by $1.9/mt on Monday, June 5, compared to last Friday, starting the current week at $55.05-56.15/mt CFR
China.
After the Dragon Boat Festival holiday (May 28-30) in
China, Chinese buyers' demand for
iron ore has remained weak, causing
iron ore inventories at Chinese ports to increase further. However, on June 2,
iron ore quotations moved up by $1/mt following the news of a fire at BHP Billiton's Mt Whaleback mine in Western Australia.
On the other hand, as of today, June 6,
iron ore inventories at Chinese ports have reached their highest level of the last 13 years. Additionally, declines seen in semi-finished and finished steel prices are causing Chinese buyers to avoid restocking. As a result, demand for
iron ore in
China has remained at low levels, leading to another fall in ore prices today.