As of May 20, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 101 points, up six points compared to May 13, while the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 92 points on the date in question, up five points over the same period, as announced by China's Xinhua News Agency. In addition, on May 20 inventory of iron ore at 33 major Chinese ports amounted to 113.54 million mt, down 1.23 percent week on week, according to the same source.
During the given week, on May 17 Brazilian miner Vale issued a warning, stating that a dam break could happen at another of its mines, thereby raising concerns regarding iron ore supply in the global market. Meanwhile, although the traditional peak season of March and April is now over, steelmakers’ production is at relatively high levels due to the big rise in new real estate construction. At the same time, inventories of import iron ore at ports and held by steelmakers are on the low side, indicating that steelmakers will replenish their stocks. However, demand is unlikely to remain at the current good levels. It is expected that import iron ore prices in the Chinese market will fluctuate at high levels in the coming week.