As of November 4, inventory of iron ore at 25 major Chinese ports amounted to 77.82 million mt, indicating an increase of 1.29 million mt or 1.68 percent week on week, as announced by China's Xinhua News Agency on November 4,.
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 134 points, up one point compared to 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 given date, up one point week on week.
The prices of imported iron ore in Chinese market have rebounded after a few days of sideways movement, due to improved purchasing activity. With traders seeking to increase their stocks ahead of the winter, iron ore inventory at China's ports has risen in recent weeks. However, the softness in the steel market and the reduced production of crude steel have curbed the uptrend of prices in the iron ore market.
Steel demand in some northern regions may be negatively impacted by slower activity with the arrival of November, which may aggravate the imbalance between supply and demand for steel. Meanwhile, most market players believe that policies decided at the Third Plenary Session of the 18th Communist Party of China (CPC) Central Committee to held on November 9-12 in Beijing may provide support for steel prices. Overall, it is thought that the import iron ore market in China may indicate some limited upward movement in the coming period.
