As of August 19, inventory of iron ore at 25 major Chinese ports amounted to 71.565 million mt, indicating an increase of 155,000 mt or 0.22 percent week on week, as announced by China's Xinhua News Agency on August 20.
As of the same date, the Xinhua-China Iron Ore Price Index for imported iron ore with 63.5 percent iron content was at 138 points, up three points compared to one week earlier. Meanwhile, the Xinhua-China Iron Ore Price Index for imported iron ore with 58 percent iron content was at 128 points on the given date, up three points week on week.
In the first part of the week ending August 19, iron ore import prices increased sharply amid upticks in finished steel prices and some positive economic developments at home and abroad. Although buyers increased their enquiries, actual transaction activity did not show a similar improvement. Coming towards the end of the week in question, market activity slackened with buyers starting to adopt a wait-and-see stance, resulting in a slight correction in import iron ore prices.
Since the capacity utilization rates of Chinese steel producers have risen and as the steelmakers' profitability has improved, market participants in general are more active in concluding iron ore transactions as compared to previous weeks. It is thought that the Chinese iron ore import market will maintain a slight rising trend in the coming week.