As of November 20, inventory of iron ore at 33 major Chinese ports amounted to 118.36 million mt, up 0.11 million mt or 0.09 percent compared to the inventory level recorded on November 13, 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 62 points, remaining stable compared to November 13. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 51 points on the date in question, down one point over the same period.
Some small traders of import iron ore were willing to sell iron ore at lower prices in the middle of the given week due to the declining trend seen in iron ore futures prices at Dalian Commodity Exchange (DCE). After these decreases seen in iron ore prices, steelmakers become more willing to conclude purchases of import iron ore and so some big iron ore traders began to raise their prices.
The winter season production cuts implemented in northern China will reduce supply of finished steel and boost finished steel prices. Meanwhile, inventory levels in the finished steel market are at low levels, which will also provide support for steel prices.
As for the coming week, it is thought that import iron ore prices will likely move sideways and may even edge up slightly if demand strengthens.