Economy

Imported iron ore stocks fall on weak demand

(Xinhua)
Updated: 2011-05-31 19:28

BEIJING - Inventories of iron ore at 25 of China's major sea ports rose by 610,000 metric tons to hit a total of 93.07 million metric tons on May 30, according to the Xinhua-China Iron Ore Price Index released on Tuesday.

The index, compiled by the Xinhua News Agency, tracks iron ore inventories and imports in Chinese spot markets through research and analysis of data from 25 major ports.

The index for 63.5-percent-purity iron ore imports fell by 5 points to hit 179 points, while that for 58-percent-purity iron ore imports slipped by 6 points week-on-week to rest at 147 points.

Xinhua analysts said that over-the-counter quoted prices for fine ore imported from India has dropped to $10 per metric ton this month after declining by $5 this week.

A Xinhua market survey showed that the country's current inventories of iron ore are enough to satisfy the demands of domestic steelmakers for at least one month. Many domestic steel factories have already suspended imports of more iron ore.

The iron and steel industry remains tentative due to electricity shortages, changes in international commodity prices and uncertainty from downstream demands, according to Xinhua analysts.

A sharp price correction for imported iron ore is unlikely in the short term and the entire market will remain weak for some time, according to Xinhua analysts.