As of July 16, inventory of iron ore at 33 major Chinese ports amounted to 129.63 million mt, down 1.7 percent compared to the inventory levels recorded on July 9, 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 63 points, remaining unchanged compared to July 9. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 52 points on the date in question, also remaining stable over the same period.
During the given week, due to environmental protection measures, steel production cuts have been implemented in China. However, hot weather conditions exerted a negative impact on demand, resulting in a balanced situation between low levels of both supply and demand.
In the given week, iron ore futures prices at Dalian Commodity Exchange (DCE) have increased, providing solid support for the iron ore spot market. At the weekend, China will likely be hit by a typhoon, which will result in further reductions in ore inventory levels at Chinese ports. It is expected that iron ore prices will move sideways in the coming week.