As of December 16, inventory of iron ore at 25 major Chinese ports amounted to 83.844 million mt, indicating a decrease of 975,000 mt or 1.15 percent week on week, 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 135 points, down by three points from one week earlier. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 122 points on the date in question, also decreasing by three points week on week.
In the given week, the Chinese domestic iron ore market was almost stable, but with some slight downticks seen for a few grades. Transaction activity has weakened. Meanwhile, iron ore futures prices (1405 contract) at Dalian Commodity Exchange have hit their lowest levels since the launch of futures contracts in October. There have been no significant changes in supply and demand in the Chinese iron ore market with both buyers and sellers continuing to adopt a wait-and-see stance. On the other hand, due to strict environmental protection measures, domestic crude steel production has decreased, and domestic inventory of finished steel, which had remained at higher levels previously, has declined as well. Nevertheless, in the coming week the Chinese iron ore market is expected to move on a stable trend on the whole with some slight fluctuations, against a background of weakened demand.
