SHANGHAI, Jul. 21 (SMM) – Torrential rain has hit north China since from July 18, 2016, including Hebei, Henan, Shandong and Shanxi. SMM survey finds that heavy rains have affected the Port of Tianjin.
Partial iron ore at the Port of Tianjin has been washed into the sea, according to SMM sources, and at present, inventories of iron ore at the port are about 8 million tonnes.
“Production at steel mills sourcing goods from the port runs normally thanks to 3-week raw material inventories, but the impact will be felt in the coming days,” SMM iron ore analyst says.
It will take about one week for iron ore, which has been immersed in the rainwater, to be used for production before moisture meets standards. Fuel costs at steel mills may increase if they use wet iron ore before they can be used in blast furnaces.
“The ongoing heavy rains will also disrupt transportation, and this will in turn delay steel mills’ raw material purchases,” SMM adds.
So far, the impact from heavy rains on the Port of Jingjin and Caofeidian, the other major two in the region, is limited, and SMM will follow up its further development.
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