Iron ore inventories at 33 major Chinese seaports increased to 80.83 million tonnes as of Monday (Oct. 19), up 3.56 million tonnes or 4.61 percent from a week earlier, according to Xinhua-China Iron Ore Price Index released on Tuesday.
The Xinhua-China IOP Index, compiled through data collected from 33 selected major seaports, showed the price index for imported 62-percent-purity-grade iron ores declined three points on week to 53 by Monday, and that for imported 58-percent-purity-grade iron ores dropped 3 points on week to 48.
The spot iron ore price first rebounded during the past week, which yet extended the steel mills' losses and led to further fewer iron ore trades. The steel industry was particularly difficult during the third quarter.
By Oct. 9, more than 90 percent of Chinese steel mills were in the red, with the high furnace operation rate dropping to 81.4 percent. In the meantime, overseas miners increased iron ore deliveries in September, adding pressure to the already oversupplied market. Therefore, it is expected the iron ore price would deteriorate further amid lower steel prices and sufficient iron ore supplies in the rest of this year.
The Xinhua-China IOP Index, developed by Xinhua News Agency and released every Tuesday on the Xinhua08 platform, tracks changes on the country's iron ore market through in-depth surveys with Chinese major seaports, iron ore traders and steelmakers, as well as analysis on customs statistics.
It serves as a reference indicator reflecting movements of Chinese iron ore stocks. The original data were collected via Xinhua's global data and information collection network and were put together with comments from experts in iron and steel production, wholesale and retail sectors.
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