As of August 25, inventory of iron ore at 33 major Chinese ports amounted to 109.34 million mt, up 0.54 million mt or 0.5 percent week on week, as announced by China's Xinhua News Agency on August 26.
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 62 percent iron content was at 90 points, down three points week on week. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 79 points on the date in question, down one point compared with last week.
During the given week, imported iron ore prices in China moved down slightly, while steelmakers have been cautious about concluding purchases. Bearish sentiment prevails in the market. Most traders hold a pessimistic view of the future prospects for the market and have lowered their sales prices.
Currently, demand for finished steel in China remains sluggish. Meanwhile, steelmakers and steel traders have been experiencing pressure from tight liquidity as the end of the month approaches. In addition, some traders of imported iron ore have also been coming under pressure from high inventory and tightness of funds. At the same time, iron ore futures prices have softened further, contributing to the poor sentiment in the iron ore market. It is expected that imported iron ore prices in China will continue their declining trend, though possibly at a slower pace.
