Iron ore inventories at the 33 major Chinese seaports monitored by Xinhua edged up 2.60 percent week on week to 90.35 million metric tons (tonnes) as of December 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 was up 2 points from a week before to 40 by December 21, and the index for iron ore imports of 58 percent purity grade also increased 2 points week on week to 36.
During the period of December 15-21, prices of the imported iron ore bottomed out. Boosted by iron ore futures trading on the Dalian Commodity Exchange (DCE), the domestic spot market also showed an uptrend amid fluctuations.
However, due to the strong speculation atmosphere, the rebound was not sustainable. Meanwhile, under the circumstances of domestic steel mills cutting and suspending production, iron ore stocks at domestic ports continued to increase.
Given the limited demand for the steel-making ingredient and financial strain of the buyers at the end of the year, the ore prices are expected to 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.
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 were 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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