As of November 25, inventory of iron ore at 25 major Chinese ports amounted to 81.11 million mt, indicating an increase of 1,631,000 mt or 2.05 percent week on week, as announced by China's Xinhua News Agency on November 26.
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 135 points, down two points compared to one week earlier. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 122 points on the given date, down three points week on week.
In the given week, the iron ore market has continued to trend down after a several-day sideways movement amid the few inquiries. Accordingly, the traders have preferred to adopt a wait-and-see stance at the current time.
Prices of imported iron ore in the Chinese market have come under downward pressure due to a number of factors. Firstly, demand in the downstream market has not shown significant improvements and mills are not so eager to purchase new iron ore supplies at the current time. Secondly, oversupply and higher inventories have prevented any upward movement in iron ore prices. Thirdly, outputs of domestic steel mills may be negatively affected by measures in China aimed at tackling environmental pollution, and this in turn would have a negative influence on iron ore demand and prices. It is thought that import iron ore prices in China may remain under downward pressure up to the New Year.