High efficiency of port discharges and rigid demand boosted by high pig iron production pushed up the amount of shipments from ports to a record high in 2023

SHANGHAI, Aug 21 (SMM) –

As of August 18, iron ore inventories across 35 ports tracked by SMM totaled 117.34 million mt, up 990,000 mt WoW, but 16.97 million mt YoY. The daily average imported iron ore shipments from the 35 ports added 102,000 mt on a weekly basis to 3.174 million mt this week. High pig iron output of BF-based steel mills brought with it rigid demand for raw materials. In addition, with upcoming delivery for the 2309 contract, spread between futures and spot prices gradually narrowed, thereby leading to some speculative demand from traders. Under such circumstance, iron ore shipments from the ports hiked to the highest level in a year. However, a build-up in inventory at ports was felt from the impact of more imported ore supply and higher efficiency of port discharge owing to the typhoon subsiding.

In the follow-up, given ample imported ore supply and waning impact of crude steel output limit, rigid demand from steel mills will be monitored. On the whole, it is expected that iron ore shipments from 35 ports may stand high. On the whole, iron ore inventories across 35 ports may slump.