Iron ore inventories at the 33 major Chinese seaports monitored edged up 1.24 percent week on week to 82.24 million metric tons (tonnes) as of November 2, 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 2 points from a week before to 49 by November 2; and the index for iron ore imports of 58 percent purity grade dropped 1 point to 45.
Affected by domestic steel mills' production cut and suspension, demand for the steel-making ingredient fell persistently in the period from October 27 to November 2.
As steel mills took a bearish attitude towards the market in the future, the purchase prices of the iron ore went down further during the period. Meanwhile, ore traders were also active to sell goods.
With the continuous fall in the ore prices, the bargaining space expanded. Given the currently sluggish steel market, prices of the imported iron ore are expected to maintain low 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.
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