As of August 27, inventory of iron ore at 25 major Chinese ports amounted to 73.431 million mt, indicating an increase of 1.866 million mt or 2.6 percent week on week, as announced by China's Xinhua News Agency on August 27.
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 63.5 percent iron content was at 137 points, down 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 127 points on the given date, also down one point week on week.
Over the past week, Chinese domestic iron ore prices have followed a weak trend, with imported iron ore prices indicating their first decline in August. Currently, imported iron ore prices are still at high levels, while there have been no significant changes in supply and demand. Mining companies and traders are still unwilling to sell at lower prices, which contributes to the stability of iron ore prices. Steelmakers' profit margins have narrowed due to the increases already witnessed in raw material costs. Most Chinese steelmakers prefer to maintain a wait-and-see stance after the restocking they previously carried out.
Although prices of imported iron ore fines have decreased below $140/mt, traders are optimistic on the prospects for the iron ore market in the future due to the relatively good economic situation and the absence of change in supply and demand. It is expected that domestic iron ore prices in China will follow a stable trend in the coming week.
