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Iron ore inventory increases at Chinese ports

Wednesday, 20 July 2016 11:20:46 (GMT+3)   |   Shanghai
       
As of July 18, inventory of iron ore at 33 major Chinese ports amounted to 100.29 million mt, up 3.56 million mt or 3.68 percent compared to the inventory level recorded on July 11, 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 59 points, up five points 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, up four points week on week. 

In the first part of the given week, imported iron ore prices in China continued to indicate a rising trend due to significant increases in iron ore futures prices and so overall transaction activity was at decent levels. However, in the latter part of the week, imported iron ore prices softened a little and traders mostly maintained a wait-and-see stance towards the iron ore market amid the declining trend of finished steel prices.

Currently, imported iron ore supplies are on the short side in the market and iron ore futures prices are moving on an upward trend, exerting a positive impact on iron ore prices. It is thought that imported iron ore prices in China will likely move sideways in the coming period.

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