Higher arrivals, production curbs grow iron ore stocks at Chinese ports

SHANGHAI, Mar 8 (SMM) – As of Friday March 8, iron ore stocks across 35 Chinese ports grew 2.24 million mt from a week ago to 135.81 million mt, SMM data showed. Higher arrivals in the north and east and lower deliveries from ports due to output controls accounted for the growth. 

Daily average deliveries from ports decreased 271,000 mt from the prior week to 2.42 million mt this week as Tangshan extended controls on sintering, and as Wuan required 14 steel mills to close 60% of blast furnace capacity. Transport restrictions during the two sessions in Beijing also accounted for the decline. Jingtang port and Caofeidian port banned transport from March 7.

Daily deliveries are likely to inch up next week as growing downstream demand drives steel mills to purchase. But output curbs will keep mills cautious about procurement.