Delivery restrictions at Tangshan port raise iron ore port stocks

SHANGHAI, Dec 28 (SMM) – Shipment restrictions from air pollution lowered daily average deliveries of iron ore leaving Tangshan's Caofeidian port, and this accumulated port stocks on the week.

Stocks across 35 major Chinese ports increased by 2.1 million mt from a week ago to stand at 130.48 million mt as of Friday December 28, SMM data showed. 

Stocks across most northern and eastern ports nudged up, except for Jiangtang port in Tangshan and Rizhao port in Shandong. Delivery limitations at Caofeidian port pushed mills to purchase from the local Jingtang port, which buoyed average deliveries departing Jingtang port above 300,000 mt/day this week. Support will wane next week as Caofeidian port temporarily ease shipment restrictions. 

For the week ended Friday December 28, average daily deliveries departing Caofeidian port shrank 120,000 mt from a week ago; average reading for the 35 ports declined by 132,000 mt, to approach a low in the second half of the year, at 2.38 million mt.