As of January 26, inventory of iron ore at 33 major Chinese ports amounted to 101.73 million mt, up 2.83 million mt or 2.86 percent compared to the inventory level recorded on January 19, as announced by China's Xinhua News Agency on January 27.
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 66 points, down two points 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, down one point week on week.
Starting from last Thursday, January 22, reports have circulated that a medium-sized steelmaker in Tangshan might suspend its production due to tight liquidity, while it has also been reported that steel strip producers in Daqiuzhuang, Tianjin, have stopped production. Currently, since finished steel prices are at low levels after previous sharp decreases, some traders are showing a willingness to build up their finished steel inventories as some steel products have been in short supply due to steelmakers’ maintenance works. However, even though steel prices might show a rebound, without an improvement in demand from downstream users, any rebound will likely be short-lived. Meanwhile, as the Spring Festival approaches, steelmakers may reduce their production activity further, which would curb demand for iron ore. It is thought that iron ore prices in China are unlikely to move on a rising trend in the coming week.