As of May 6, inventory of iron ore at 33 major Chinese ports amounted to 108.95 million mt, up 640,000 mt or 0.59 percent compared to the inventory level recorded on April 28, 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 62 percent iron content was at 106 points, down five points from one week earlier. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 94 points on the date in question, also down five points week on week.
During the given week, iron ore prices in the Chinese market have indicated declines against the backdrop of significant decreases in iron ore futures prices. Before the Labor Day holiday, steelmakers increased their inventory replenishment activity somewhat, though mostly purchasing just small volumes of iron ore due to shortages of funds. Subsequently, the main domestic miners have reduced their iron ore prices as they need to increase sales and bring in cash to improve their liquidity and also amid insufficient purchasing activity by steelmakers. It is thought that transaction activity for imported iron ore will slow down in the coming period and that prices of imported ore will fluctuate within a narrow range.
