Iron ore inventories at 35 Chinese ports continued to accumulate amid significantly decreasing pick-up volume from ports

As of May 24, the total inventory across the 35 ports tracked by SMM was 144.4 million mt, up 430,000 mt WoW and up 20.02 million mt YoY. The average daily iron ore pick-up volume from ports was 2.893 million mt, down 84,000 mt WoW but up 74,000 mt YoY.

This week, port arrivals remained high. Current pig iron output has basically peaked. Steel mills experienced losses, leading to a slowdown in iron ore procurement frequency. As a result, pick-up volume from ports significantly declined.

Port arrivals are expected to rise next week. According to SMM, pig iron output at steel mills is expected to show a downward trend next week, so iron ore concentrates demand is expected to decline. Therefore, pick-up volume from ports may continue to fall, causing a risk of persisting stock accumulation at ports.