Iron ore inventories at 33 major Chinese seaports rose 20kt week-on-week to 109Mt, according to the Xinhua-China Iron Ore Price Index.
The price index for iron ore imports of 62% purity grade declined two points week-on-week to 88 at end August 2014. Imports of 58% purity grade slid three points to 76.
Imported iron ore has been fluctuating between $80 and $89/tonne since the Xinhua-China IOP dropped below 90 on 26 August.
The iron ore spot price is now lower than the port spot price resulting in the suspension of business by some traders and processors. Some large domestic mining companies have cut prices to boost sales.
The Chinese spot iron ore price has dropped 34% since the beginning of the year and the downward trend is expected to continue.
Source: China Metals.