Iron ore inventory decreases at Chinese ports

As of June 15, inventory of iron ore at 33 major Chinese ports amounted to 80.24 million mt, down 1.3 million mt or 1.59 percent compared to the inventory level recorded on June 8, as announced by China's Xinhua News Agency on June 16.
 
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 65 points, up one point week on week. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 59 points on the date in question, also increasing by one point week on week.
 
During the given week, imported iron ore prices have continued their rebound, though at a slower pace, while transaction activities have been at decent levels as traders have been willing to sell following the increases already recorded by prices. However, finished steel prices in the Chinese domestic market have softened, exerting negative pressure on iron ore prices. It is heard that some steelmakers will carry out maintenance works in the coming period, also with the aim of reducing supply volumes and thereby stabilizing steel prices. This will decrease the demand for iron ore and negatively affect prices of imported iron ore. It is expected that imported iron ore prices will likely see a downward adjustment in the coming week as significant volumes of iron ore supplies are due to arrive at Chinese ports during the latter part of June.