Inventories of iron ore at 25 of China’s major sea ports dropped to 94.17 million metric tons in the week ending on Sept 26, according to the Xinhua-China Iron Ore Price Index, which was released on Sept 27.

Last week’s supplies of imported iron ore were 320,000 metric tons lower than that of the previous week, down 0.34 percent week-on-week, according to the index.

The price index for 63.5-percent-purity and 58-percent-purity iron ore imports both dropped by one point to 186 points and 155 points, respectively.

Xinhua analysts said sharp declines of billet price and weakening demand for iron ore have led to declines in imported iron ore prices.

Steel companies have also cut their bid prices for iron ore due to weak demand for steel in the coming winter and the relatively large amount of remaining stock, according to Xinhua analysts.

However, price corrections for imported iron ore will be limited as a result of rising shipping costs, the analysts said. – Xinhua

Source:cnbusinessnews