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Iron ore inventory increases at Chinese ports

Wednesday, 29 June 2016 10:33:21 (GMT+3)   |   Shanghai
       
As of June 27, inventory of iron ore at 33 major Chinese ports amounted to 93.85 million mt, up 820,000 mt or 0.88 percent compared to the inventory level recorded on June 20, 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 51 points, remaining stable week on week. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 43 points on the date in question, also remaining stable week on week. 

In the given week, imported iron ore prices in China indicated an overall slight upward movement. In the first part of the given week, imported iron ore prices moved on a rising trend due to increases in iron ore futures prices and overall transaction activity was better than in the previous week. However, towards the latter part of the week, traders mostly maintained a cautious stance towards the iron ore market against the background of the UK's vote to leave the European Union and so transaction activities slackened a little.

Currently, iron ore futures prices are facing downward pressure due to fluctuations in the international financial markets after the UK’s decision to leave the EU, and this exerts negative pressure on the iron ore spot market. It is thought that imported iron ore prices in China will likely move sideways in the coming period.

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