Iron ore stocks lost 2 percent in China during today’s trading. Chinese ports are overloaded with the raw materials. The new report shows the highest in many years level of the commodities saved in the port. Meanwhile, the intention of Chinese officials to lower down steel overcapacity can help to save the prices on the normal level.
According to the official report, that was published last Friday, Chinese ports have 130.05 million tons of iron ore. It is the biggest number since the 2004 year.
This year reserve of iron ore rose to the incredible highs.
Mills in China are still working with the high-quality ore to make more steel for it, and the prices are still high.
Today the ore from the most popular traders was equal to 661 yuan for one tonne losing 2.5 percent of income.
The weak prices on the futures could drop down the iron ore during the Morning trades. It already lost 1.1 percent and stood at 91.32 dollars for one tonne last Friday.
According to the analysts, traders are afraid of the new inventories and reports from it.
Meanwhile, Chinese officials do not hurry up to shut down iron ore storages and want to support prices for iron ore and steel during this week.
They are going to decrease the capacity of steel during the next year.
The political uncertainty in many countries and Chinese problem with South Korea raised the prices for the iron ore this morning as well.