As of May 20, inventory of iron ore at 25 major Chinese ports amounted to 72.49 million mt, indicating an increase of 585,000 mt or 0.81 percent on week-on-week basis, 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 63.5 percent iron content was at 124 points, down six points week on week.eanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 109 points on the given date, down five points week on week.
In the past week, Chinese steel mills and traders started to impose pressure on import iron ore prices and so prices indicated another decline. However, overseas exporters were still confident on the prospects for a rebound of iron ore prices. In this context, China's iron ore import spot market was still characterized by limited transaction activity. The increase in iron ore inventory at Chinese ports also put downward pressure on iron ore prices.
The imbalance between supply and demand in the Chinese iron ore market is likely to continue amid the sluggishness of the steel market. Chinese mills have remained cautious as regards purchases of raw material and have been buying just in line with their needs due to lower finished steel prices, narrow profit margins, market oversupply and tight working capital. It is thought that the Chinese iron ore import market will indicate a softening with some fluctuations in the coming days.
