Stocks of different types of ore still diverged, lump stocks decreased sharply

According to SMM data, iron ore stocks across the ten major ports last week totalled 109.16 million mt last week, down 930,000 mt WoW from level before the Labour Day holiday, owing to a free-fall in port arrivals. Stocks by ore type and their changes from pre-holiday level: fines (80.76 million mt, +500,000 mt); pellet (5.16 million mt, -20,000 mt); concentrate (10.17 million mt, -70,000 mt); lump (13.07 million mt, -1.34 million mt).

Some regional environmental protection policies boosted demand for lump. Slight restocking after the holiday and falling port arrivals were the reasons behind shrinking port inventory of pellet and concentrate.

Looking at this week, according to current tracking of operating rates of BFs, a continued rise in daily average output of pig iron may increase shipments from the ports. However, iron ore inventory at the ports may still hike amid probably growing port arrivals. Losses of steel mills may bump up demand for highly cost effective ores. Stocks of different types of ore will still be mixed.