Iron ore port stocks increase for 1st time in 15 weeks

SHANGHAI, Jul 19 (SMM) – Stocks of seaborne iron ore across Chinese ports rose this week, after 14 consecutive weeks of declines, as production curbs dented demand and as arrivals expanded.

SMM data showed that stocks across 35 Chinese ports grew 2.7 million mt from a week ago to stand at 107.1 million mt as of Friday July 19. This was down 31.65 million mt from a year ago, compared to a year-over-year decline of 34.88 million mt seen on July 12.

SMM expects port stocks to extend their gains next week, in anticipation of a greater number of arrivals.

Daily average iron ore deliveries from the 35 ports fell 38,000 mt from the prior week, but increased 87,200 mt year on year, and stood at 2.62 million mt this week.

Output controls across steel mills in Tangshan continued to lower deliveries from ports in the region. This, combined with greater arrivals, grew port stocks.

Daily deliveries from Qingdao port rose considerably as steel mills in the east raised operating rates across blast furnaces.

Port stocks along the Yangtze River inched up as more shipments arrived, and as steel mills slowed procurement after they stockpiled in the previous week.