Iron ore stocks at 35 Chinese ports decreased amid a large drop in port arrivals last week

As of May 10, iron ore inventory across 35 ports tracked by SMM totalled 142.71 million mt, down 750,000 mt from level before the Labour Day holiday but up 20.29 million mt YoY. Daily average pick-up from the ports were 2.929 million mt, up 27,000 mt from pre-holiday level and 66,000 mt YoY.

According to SMM tracking, port arrivals shrank last week. Reasons for rising pick-up from the ports were some restocking before the holiday and a rise in operating rates of BFs and pig iron output.

Looking at this week, port arrivals may increase again. Boosted by sustained pig iron output hike, shipments from the ports may still mount up, but to a limited extent, owing to the end of the restocking last week. Overall, if port arrivals shoot up, ore stocks at ports may build up.