As of August 5, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 100 points, down 18 points compared to July 29, while the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 89 points on the date in question, also down 18 points over the same period, as announced by China's Xinhua News Agency. In addition, on August 5 inventory of iron ore at 33 major Chinese ports amounted to 100.49 million mt, up 1.66 percent week on week, according to the same source.
During the given week, iron ore shipments from BHP Billiton and Vale have increased due to the completion of maintenance works at some ore fields. Meanwhile, iron ore inventory levels at Chinese ports have indicated sharp rises, with iron ore from Australia accounting for more than 75 percent of iron ore at China’s ports. Moreover, iron ore shipments are expected to increase in the future, which will ease the supply tightness in Chinese market and drag down prices of iron ore. At the same time, the demand for iron ore has slackened as the capacity utilization rates of blast furnaces and electric furnaces have decreased. It is expected that import iron ore prices in China will decline in the coming week.
