Imported iron ore prices at 33 major Chinese ports declined last week, as stated in Xinhua-China Iron Ore Index’s report released on 23 June.
The price index for imported iron ore 62% dropped four points to 61 for the week that ended on 22 June from a week earlier, while price index for iron ore 58% also fell four points to 55 during the same period, the index showed.
Inventories of imported iron ore at these 33 ports stood at 78.83 million tonnes, a drop of 1.41 million tonnes or 1.56% from the previous week.
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Due to cost-slashing measures taken by iron ore suppliers in Australia and Brazil, and reduced profit in the steel industry, iron ore prices fell below USD50 per tonne, standing at the lowest point in June, stated Goldman Sachs in its latest report.
The shipments of iron ore to China will keep growing, which will increase iron ore inventories and cause prices to dip further, the report added, projecting that iron ore prices will fall to USD49 per tonne in the third quarter of 2015 and decline even lower to USD48 per tonne in the final quarter.
China produced less steel in the first quarter of 2015 as demand reduced amid a slowing economy and government moves to overhaul the saturated sector, according to Xinhua-China Iron Ore Index’s report.