As of October 23, inventory of iron ore at 33 major Chinese ports amounted to 113.18 million mt, up 1.28 million mt or 1.14 percent compared to the inventory level recorded on October 16, 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 60 points, down three points compared to October 16. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 50 points on the date in question, down one point over the same period.
During the given week, finished steel prices rose quickly at the beginning of the week, while downstream users were unwilling to make purchases, resulting in slack transaction activity in the finished steel market. In the middle of the week, ferrous metals futures prices declined significantly, dragging down finished steel prices in the spot market and thereby contributing to improved transaction activities. Later in the week, ferrous metals futures prices rose again, exerting a positive impact on the spot market. Meanwhile, inventories in the finished steel market have been at low levels and ex-works prices from major steelmakers have been stable or have increased, and these factors have provided a certain degree of support for finished steel prices.
However, due to the congress held by the Chinese government, restrictions were imposed on the operations of steel producers, miners and ore concentrating facilities and also on transportation by diesel vehicles, with steelmakers’ iron ore purchases being negatively impacted by these measures. It is thought that import iron ore prices will likely move on a sideways trend in the coming week.