Significant Increase in iron ore pick-up volume from ports slowed inventory accumulation at 35 ports

As of May 31, the inventory at 35 ports tracked by SMM totalled 144.55 million mt, up 150,000 mt WoW and 20.89 million mt YoY. The average daily iron ore pick-up volume from ports was 3.039 million mt, up 146,000 mt WoW and 234,000 mt YoY.

According to SMM, port arrivals stayed at a high level last week. Due to continuous increase in pig iron output, previous coke price cuts and short-term strong purchase appetites among steel mills amid improved profit margins, iron ore pick-up volume from ports spiked, helping the total inventory growth at ports narrow significantly.

Looking ahead to this week, port arrivals are expected to stay high. Demand side, pig iron output currently shows a downward trend, reducing the demand for iron ore concentrates. Therefore, iron ore pick-up volume from ports may weaken, causing port inventories to accumulate.