As of May 28, inventory of iron ore at 25 major Chinese ports amounted to 74.15 million mt, indicating an increase of 1.66 million mt or 2.33 percent on week-on-week basis, 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 63.5 percent iron content was at 123 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 107 points on the given date, down two points week on week.
In the past week, Chinese import iron ore prices have indicated a further decline. The Chinese import iron ore market has remained sluggish, with limited market activity observed as prices continue to soften. Although import iron ore prices have declined to a new low for the current year, market players believe that the Chinese iron ore import market is likely to indicate a further softening in the coming days because of low demand for iron ore and the lack of any obvious improvement in the finished steel market.
Although some mills and traders intend to increase their purchases at lower prices, for the time being they are maintaining a cautious stance and are buying small tonnages due to the unfavorable situation in the finished steel market. Meanwhile, there is also room for negotiations on prices of spot iron ore at Chinese ports.
It is thought that the Chinese iron ore import market will indicate a further softening in the coming days, while pessimism will continue to prevail in the market.