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Iron ore inventory decreases at Chinese ports

Wednesday, 31 August 2016 12:05:14 (GMT+3)   |   Shanghai
       
As of August 29, inventory of iron ore at 33 major Chinese ports amounted to 101.18 million mt, down 1.33 million mt or 1.3 percent compared to the inventory level recorded on August 22, 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 60 points, down one point week on week. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 50 points on the date in question, also down one point week on week.

In the given week, imported iron ore prices in China indicated diverse trends, with a stable trend seen in mainstream iron ore prices (prices of 62-62 percent Fe content iron ore from Australia and Brazil) and significant decreases in non-mainstream iron ore prices (especially prices of Indian ore), due to different needs from buyers. Meanwhile, the declining trend of iron ore futures prices and traders’ willingness to offer at low prices and to pursue large shipment volume have exerted negative pressure on iron ore prices in the spot market. 
 
At present, demand for iron ore pellet and lump ore is relatively high, while iron ore inventories and supplies in the market are at sufficient levels. It is thought that prices of imported iron ore in China will likely move sideways in the coming period.

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