Meanwhile, global iron ore prices are still expected to maintain their downward trend amid slack re-stocking by Chinese mills and due to the rise seen in iron ore inventory at Chinese ports. Australia-based Commonwealth Bank stated in Tuesday, February 23, that iron ore prices are foreseen to decline to $40/mt. According to the banks statement, iron ore prices have increased more than expected. The bank still believes the upward movement reflects the increases seen re-stocking demand in China following the Chinese New Year holiday as steel mills ready themselves for the construction season, which traditionally begins in March. Commonwealth Bank has forecast iron ore prices to fall below $40/mt in the next month as optimism for steel demand in China fades.
Chinese iron ore prices move downwards once again
Prices of ex-Australia iron ore of 62 percent Fe content for delivery to China's Qingdao port, which moved in the range of $49-51/mt CFR last week, have remained unchanged since last Friday, starting the current week at $49-49.5/mt CFR China. As of February 22, inventory of iron ore at 33 major Chinese ports amounted to 91.75 million mt, up 1.08 million mt or 1.19 percent compared to the inventory level recorded on February 15, as announced by China's Xinhua News Agency on February 24. Demand for iron ore had increased in China on the back of revived restocking by Chinese steel mills after the Chinese New Year, while import iron ore prices in China had risen accordingly. However, Chinese buyers' re-stocking activities have come to an end in the middle of last week, leading import iron ore prices to move downwards once again