Iron ore stock growth at 35 ports increased amid slower-than-expected stocking by steel mills before the Labour Day holiday

As of April 26, iron ore inventories across 35 ports tracked by SMM totalled 143.46 million mt, up 1.93 million mt WoW and 18.30 million mt YoY. Daily average iron ore picked up from the ports was 2.902 million mt, up 18,000 mt WoW but down 12,000 mt YoY.

The rise in pig iron output amid decent profits of steel mills and restocking before the Labour Day holiday helped elevate cargo pick-up from the ports. However, the notable increase in arrivals and slower-than-expected restocking caused inventory at ports to rise.

Looking at next week, the operating rate of BFs and pig iron output will continue to rise, which will provide certain support for iron ore demand. However, as rapidly increasing raw material prices squeeze steel mills' profits, their procurement may slow down. In addition, as port arrivals are expected to remain high in the short term, inventories at the ports may still move up.