Iron ore port stocks stand 10% lower than a lunar year earlier

SHANGHAI, Feb 15 (SMM) – Stocks of iron ore across 35 major Chinese ports stood at 132 million mt as of Friday February 15, up 4.13 million mt from February 1, the last Friday before the Lunar New Year break, but down 14.47 million mt, or some 10% from a lunar year earlier, SMM data showed.

Compared to levels before the holidays, inventories at ports in the east and north expanded while those at some ports along the Yangtze River dipped.

Iron ore deliveries leaving those ports averaged 2.42 million mt per day in the week ended February 15, down 390,000 mt from the record high of 2.81 million mt per day in the week February 1. Significantly higher prices of seaborne iron ore after the Vale accident in Brazil deterred buyers from making purchases.

Some mills made small purchases later in the week when the prices retreated from highs. This grew iron ore deliveries leaving ports in Tangshan in the second half of this week.

Steel mills made limited spot iron ore purchases this week as some worked through existing inventories at ports.

Mills that relied on spot cargoes are expected to start to purchase next week, which would bolster iron ore deliveries from ports.