As of March 2, inventory of iron ore at 33 major Chinese ports amounted to 96.54 million mt, up 0.84 million mt or 0.88 percent compared to the inventory level recorded on February 16, as announced by China's Xinhua News Agency on March 3.
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 64 points, remaining unchanged 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, also remaining stable compared to the previous week.
During the period in question (February 17-March 2), transaction activity had not yet seen a return to normal levels after the Spring Festival holiday, while most domestic miners had not yet resumed their production. Currently, iron ore prices are at comparatively low levels, affecting miners' enthusiasm to resume their production, which has in turn provided a certain degree of support for domestic iron ore prices due to the shortage of domestic production iron ore in the spot market. Although offer prices of mainstream products in the spot market are mostly at the same levels as before the holiday, imported iron ore prices for future delivery have indicated a slight uptrend as iron ore futures at Dalian Commodity Exchange have moved on a rising trend after the holiday.
In the meantime, activity in the domestic finished steel market has remained slack, which will limit the demand for iron ore. It is thought that imported iron ore prices in China will likely follow a downward trend in the coming week.