As of November 3, inventory of iron ore at 33 major Chinese ports amounted to 103.44 million mt, up 1.47 million mt or 1.44 percent compared to the inventory level recorded on October 27, 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 79 points, down one point week on week. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 71 points on the date in question, remaining stable week on week.
During the given week, imported iron ore prices edged down. Due to strict environmental protection requirements agreed during the recent Asia-Pacific Economic Cooperation (APEC) meeting, steelmakers in northern China reduced their purchases of imported iron ore, resulting in a softening of prices of imported ore. Traders mostly maintained a wait-and-see stance, negatively affecting transaction activity. Meanwhile, prices of domestic production iron ore also indicated a downtrend as steelmakers still preferred imported ores.
Although steel production is affected by environmental measures, domestic finished steel prices are unlikely to register a continuous upward movement and so are unlikely to provide support for imported iron ore prices. In addition, supplies of imported iron ore exceed demand and this also exerts a negative impact on prices of imported iron ore. It is expected that imported iron ore prices will indicate a slight downtrend or remain on a stable trend in the coming week against the backdrop of limited profit margins in the steel market.