As of June 4, inventory of iron ore at 33 major Chinese ports amounted to 135.45 million mt, up 0.09 percent compared to the inventory levels recorded on May 28, 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 64 points, up one point compared to May 28. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 52 points on the date in question, also up one point over the same period.
Starting from the middle of the given week, due to rises seen in ferrous metal futures prices in China, finished steel prices in the domestic spot market increased. Moreover, environmental protection measures implemented due to the approaching Shanghai Cooperation Organization Summit (SCO) 2018 negatively affected the finished steel output, bolstering finished steel prices due to tighter supply. However, high temperatures and rainy weather in the coming traditional offseason will slacken demand for finished steel and will likely drag down steel prices.
As of the middle of the given week, due to rises seen in finished steel prices, import iron ore prices increased. However, it is expected that import iron ore prices will likely move sideways or edge down slightly in the coming week due to slack demand from steelmakers.