It is reported that the iron ore inventories at 25 major China ports declined by 0.7% on a weekly basis to 99.6 million tonnes for the week ending 12 Dec 2011. This was a first time in one month that inventories declined below 100 million tonnes.

A decline in crude steel output dampened buying enthusiasm among most steel manufacturers and iron ore traders who are still waiting to make a move in light of possible price fluctuations in the future.

According to customs data, China steel exports stood at 45.16 million tonnes between January and November up by 13.8%YoY while steel imports fell 4.2%YoY to 14.39 million metric tons.

Currently, China domestic iron ore is cheaper than imports putting Chinese steelmakers in aposition to limit their purchases of raw materials particularly from overseas.

(Sourced from www.indiainfoline.com)