As of April 22, inventory of iron ore at 25 major Chinese ports amounted to 71.10 million mt, indicating a rise of 0.57 million mt or 0.81 percent on week on week basis, as announced by China's Xinhua News Agency.
As of April 22, the Xinhua-China Iron Ore Price Index for imported iron ore with 63.5 percent iron content was at 138 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 121 points on the given date, also down three points week on week.
Imported iron ore prices moved down during the week of Apr 16-22, though domestic traders have been reluctant to lower their prices. Meanwhile, steelmakers have mostly adopted a cautious stance towards purchases, thereby causing prices to weaken.
With the Labor Day holiday drawing closer, some steelmakers will purchase imported iron ore to replenish their inventories, which will likely provide a certain degree of support for iron ore prices in the current week. However, due to overcapacity, it appears that steel prices are unlikely to move on a strong trend in the short term. It is expected that imported iron ore prices will move sideways in the coming week.
