Iron ore inventories at the 33 major Chinese seaports monitored increased 2.87 percent week on week to 79.98 million metric tons (tonnes) as of September 21, according to the Xinhua-China Iron Ore Price Index (Xinhua-China IOP Index) released on Tuesday. The index, compiled through research and analysis of 33 selected major seaports, shows that the price index for iron ore imports of 62 percent purity grade declined 1 point from a week before to 58 by September 21; and the index for iron ore imports of 58 percent purity grade was unchanged week on week to 53.
During the period of September 15-21, prices of imported iron ore went down due to the continuous fall in iron ore futures traded on the Dalian Commodity Exchange (DCE) and buyers' reluctance to purchase raw materials at the high price. Meanwhile, steel prices on the domestic spot market continued to fall during the period.
Due to weak demand from downstream users, mainstream steel mills cut steel prices for October bookings. With the approach of the long holiday (National Day holiday in October 1-7), downstream users are expected to buy steels in advance, helping stabilize the steel price. However, due to pressure on return of funds, traders will accelerate sales of the products.
Given the above factors, prices of iron ore imports will remain weak in the near term, said analysts. Developed by Xinhua News Agency, the Xinhua-China Iron Ore Price Index (Xinhua-China IOP Index) is released every Tuesday on the Xinhua08 platform.
The index closely tracks changes of the country's iron ore market on the basis of in-depth surveys of China's major sea ports, iron ore traders, and steel makers, as well as analysis of Customs statistics, and serves as a reference indicator that is able to reflect changes in iron ore stocks in China. The original data was collected via the global data and information collection network of Xinhua and put together with comments from industry experts in the iron and steel production, wholesale, and retail sectors.
Latest comments