According to Xinhua-China iron ore price index, the domestic imported iron ore stockpiles in Chinese 25 main ports reached 96.62 million metric tons on June 4, decreasing by 620 thousand tons compared to previous week. At the same time, the price index for imported 63.5% iron ore was roughly at 137, up one unit from prior week. Meanwhile, the prices for 58% iron ore were 116, also increasing by one unit from previous week.
Even though the government may release some economic stimulus packages, experts said that the actual effects to steel market will lag behind by approximately by 1-2 months. Under this circumstance, we expect that the iron ore price will continue its weak trend in the short run.