Iron ore port stocks fall for 11 weeks

SHANGHAI, Jun 21 (SMM) – Stocks of seaborne iron ore across Chinese ports declined for an 11th straight week this week, and are unlikely to rebound next week, in anticipation of robust demand and limited growth in arrivals.

SMM data showed that iron ore stocks across 35 Chinese ports shrank 1.06 million mt from a week ago and 33.69 million mt from a year ago, to stand at 108.49 million mt as of Friday June 21.

Daily average deliveries leaving those ports, however, fell 141,000 mt from the prior week to average 2.55 million mt this week. This was 29,500 mt higher than the same period last year.

Daily deliveries leaving ports in Tangshan came off from highs this week as increasingly higher ore prices and a shortage of certain mainstream products deterred steel mills from purchasing.

The falling share of tradable materials among overall port stocks prompted traders to hold back from selling and await a further stronger market, which also dragged on deliveries leaving ports.

Qingdao port saw greater deliveries leave this week, but increased arrivals drove up stocks of mainstream Australian materials.