As of October 20, inventory of iron ore at 33 major Chinese ports amounted to 103.68 million mt, down 1.19 million mt or 1.1 percent compared to the inventory level recorded on October 13, 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 80 points, remaining stable week on week. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 70 points on the date in question, also remaining unchanged week on week.
During the given week, imported iron ore prices have seen slight fluctuations, while the main contract price of iron ore futures at Dalian Commodity Exchange indicated a sharp rise on October 20, stimulating transaction activity for imported iron ore in the spot market and having a positive impact on spot iron ore prices.
With the Asia-Pacific Economic Cooperation (APEC) meeting due to be held in Beijing in November, local governments in Hebei Province, Beijing and Tianjin have been required to restrict production for high-pollution industries including steel, with anticipated reductions in supplies expected to provide a certain degree of support for finished steel prices in November. Although increases have recently been seen in domestic finished steel prices, prices of domestic production iron ore have come under pressure as steelmakers have been unwilling to purchase domestic ore and so large mining enterprises in Hebei Province have reduced their ex-works prices for iron ore again. It is expected that imported iron ore prices will also be affected by bearish market sentiment and are unlikely to register upward movement in the coming week.