As of September 2, inventory of iron ore at 25 major Chinese ports amounted to 74.75 million mt, indicating an increase of 132,000 mt or 1.75 percent week on week, as announced by China's Xinhua News Agency on September 3.
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 137 points, unchanged compared to one week earlier. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 128 points on the given date, down one point week on week.
Due to the ongoing downtrend of finished steel prices and slowing iron ore demand from the downstream market, traders have been willing to lower their iron ore shipment prices. At the same time, at the end of August mills were more cautious about concluding purchases, thereby contributing to lower activity and higher iron ore inventory at Chinese ports.
Market players are generally optimistic about the future market due to the traditional peak season for business in September, though mills remain cautious as regards purchases for the time being. The iron ore market in China will likely trend up in September as end-user demand is expected to improve on the back of construction work on new projects, while mills are expected to replenish their stocks ahead of the National Day Holiday in China at the start of October.