As of December 2, inventory of iron ore at 25 major Chinese ports amounted to 83.77 million mt, indicating an increase of 2.66 million mt or 3.28 percent week on week, as announced by China's Xinhua News Agency on December 2.
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, unchanged from 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 date in question, neutral week on week.
In the given week, imported iron ore prices in the Chinese market have mostly been stable, though some slight fluctuations have been observed in prices of a few grades. In addition, there have been no significant changes in supply and demand in the Chinese iron ore market, while the traders have continued to adopt a wait-and-see stance, with transaction activity remaining at moderate levels.
Market participants do not foresee significant price growth in finished steel in the period ahead as demand from construction activities may weaken further due to the winter holidays. Meanwhile, traders have not shown a willingness to stock up steel products for the winter, therebynegatively impacting the prospects for the domestic finished steel market. Overall, it is thought that the iron ore market in China may continue to trend sideways in the coming week.