As of November 11, inventory of iron ore at 25 major Chinese ports amounted to 77.402 million mt, indicating a decrease of 418,000 mt or 0.54 percent week on week, as announced by China's Xinhua News Agency on November 12.
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 136 points, up two 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 124 points on the given date, also up two points week on week.
In the given week, influenced by the rebound in the finished steel market, the prices of imported iron ore moved on an upward trend. Inquiries and ordering activity have gradually increased. Although the improvements in the rebar market have bolstered the prices of iron ore, the sluggish transaction activity in the downstream market make it difficult for iron ore prices to remain firm. Steel mills have been showing some reluctance to purchase at higher price levels, while the miners are reluctant to lower their prices.
Overall, it is thought that the Chinese domestic iron ore market will just trend sideways in the near term, given that there is insufficient support for the ongoing upward movement of import iron ore prices.
