As of July 8, inventory of iron ore at 25 major Chinese ports amounted to 75.81 million mt, indicating an increase of 630,000 mt or 0.84 percent week on week, 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 63.5 percent iron content was at 125 points, up 10 points compared to one week earlier. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 109 points on the given date, up five points week on week.
Last week, Chinese iron ore import prices increased sharply but transaction activity was slow.
Due to increases in some finished steel prices, traders are reluctant to sell large tonnages and market supply has been tight for certain grades. Both the upticks in finished steel prices and the supply tightness in question have contributed to the increase in iron ore import prices. However, steel producers have remained cautious as regards iron ore purchases and have not significantly replenished their stocks amid weak demand in the finished steel market.
The uptrend in iron ore import prices may be inhibited by the weak demand for finished steel. If iron ore import prices reach high levels, purchases on the downstream side will decrease and the rise in iron ore prices may come to a halt. As regards the coming days, however, it is thought that the Chinese iron ore import market will continue to move up.
