As of December 29, inventory of iron ore at 33 major Chinese ports amounted to 97.43 million mt, down 1.75 million mt or 1.76 percent compared to the inventory level recorded on December 22, as announced by China's Xinhua News Agency.
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 68 points, down one point week on week. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 60 points on the date in question, remaining stable week on week.
During the past week, imported iron ore prices in China have been characterized by softness. Currently, finished steel prices have continued to move on a weak trend due to pessimism as regards the future prospects for the steel markets and given the tightness of liquidity at the end of year. In the past two weeks, average prices in the domestic finished steel market have dropped to their lowest levels of the past 10 years, exerting strong pressure on steelmaking enterprises. Before the Spring Festival (February 18-24), domestic steelmakers will continue to put downward pressure on iron ore prices in order to limit their costs. If their steel sales activities remain poor, steelmakers will have to cut production, which will affect demand for imported iron ore. It is expected that imported iron ore prices in China will continue to be characterized by softness in 2015.