As of February 2, inventory of iron ore at 33 major Chinese ports amounted to 97.28 million mt, down 4.45 million mt or 4.37 percent compared to the inventory level recorded on January 26, as announced by China's Xinhua News Agency on February 3.
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 62 points, down four points week on week. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 54 points on the date in question, down five points week on week.
During the given week, imported iron ore prices fell to their lowest level in six years. Since steelmakers have increased their maintenance work on blast furnaces, their demand for iron ore has continued to be slack, negatively influencing imported iron ore prices. Traders have been unwilling to sell amid the ongoing downtrend of iron ore prices.
Steelmakers in China have cut back on their production, which has exerted a positive impact on local finished steel prices and which in turn will provide some support for iron ore prices. With the approach of the Spring Festival holiday (February 18-24), more and more medium-size and large miners in China will cut or suspend their iron ore production. In the coming period, it is expected that imported iron ore prices in China will fluctuate within a narrow range amid low supply and sluggish demand.