As port clearance volume slightly decreased, iron ore inventory at 35 ports continued to accumulate

As of July 12, iron ore inventory at 35 ports tracked by SMM was 146.22 million mt, up 180,000 mt WoW and 24.85 million mt YoY. The daily port clearance volume averaged 3.025 million mt, down 4,000 mt WoW and 27,000 mt YoY. According to SMM, port arrivals remained at a relatively high level this week. Pig iron output slightly decreased this week. In addition, entering the demand off-season, steel mills mainly restocked as needed, leading to a relatively quiet market. Therefore, iron ore port clearance volume slightly fell. Overall, port inventory continued to accumulate.

Looking into next week, port arrivals are expected to remain at a relatively high level. According to SMM, blast furnace pig iron output still shows a downward trend, and the profits of steel mills have not significantly improved. Steel mills may formulate corresponding blast furnace maintenance plans in the near future, leading to a weakening demand for iron ore concentrates. Therefore, port inventory is expected to continue accumulating.