On January 11, inventory of iron ore at 33 major Chinese ports amounted to 106.06 million mt, down 1.31 million mt or 1.22 percent compared to January 4, as announced by China's Xinhua News Agency.
During the given week, import iron ore prices in China moved up amid rises in futures prices and stable demand, especially when allocation of some grades of iron ore were limited. More iron ore arrived at Chinese ports, but worries about lower supply in future weeks boosted purchases.
Meanwhile, blast furnace capacity utilization rates of Chinese steelmakers declined due to the Covid-19 pandemic in northern China and slack demand from downstream users during the traditional offseason. However, steelmakers may start building up stocks of iron ore for the winter season and ahead of the Chinese New Year holiday (February 11-17), which will support prices. Import iron ore prices will likely stay at high levels in the near future as market players are optimistic as regards the prospects for the global market.