Transportation, production curbs deter iron ore deliveries from Chinese ports

Published: Sep 27, 2019 11:28
Daily iron ore deliveries from Chinese ports dropped 375,000 mt from the prior week

SHANGHAI, Sep 27 (SMM) – Chinese ports saw the amount of iron ore delivered this week sharply decline from the previous week, as authorities imposed restrictions on road transportation and steel production to combat heavy air pollution.

SMM data showed that daily iron ore deliveries from 35 Chinese ports averaged 2.46 million mt in the week ending September 27, down 375,000 mt from the prior week and 206,500 mt from the same period last year.

Environmental restrictions slowed steelmakers’ raw material restocking ahead of the Golden Week holiday, and suspended commodity transportation into and out of ports in the top steelmaking hub of Tangshan from September 22.

One-day iron ore deliveries leaving Jingtang port dropped to only 38,000 mt on September 23, compared with the daily average of above 350,000 mt in the week ending September 20.

The drop in deliveries, however, failed to grow iron ore stocks across those ports, which came in at 110.7 million mt as of September 27, down 1.23 million mt from a week ago and 22.82 million mt from a year ago, showed SMM data.

SMM estimates that 11.26 million mt of seaborne iron ore arrived at major Chinese ports last week, down 2.67 million mt from the week ending September 14.

Iron ore deliveries from Chinese ports are likely to recover after the break, in anticipation of greater arrivals and the removal of environmental limitations at the start of October.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
ADC12 Consolidates on a Strong Note as Costs Rise and Orders See Marginal Improvement [Aluminum Scrap and Secondary Aluminum Weekly Review]
18 hours ago
ADC12 Consolidates on a Strong Note as Costs Rise and Orders See Marginal Improvement [Aluminum Scrap and Secondary Aluminum Weekly Review]
Read More
ADC12 Consolidates on a Strong Note as Costs Rise and Orders See Marginal Improvement [Aluminum Scrap and Secondary Aluminum Weekly Review]
ADC12 Consolidates on a Strong Note as Costs Rise and Orders See Marginal Improvement [Aluminum Scrap and Secondary Aluminum Weekly Review]
[Aluminum Scrap and Secondary Aluminum Weekly Review: ADC12 Consolidates on a Strong Note amid Rising Costs and Marginal Order Improvement] In terms of price spreads, on September 10, the price difference between A00 aluminum and mixed aluminum extrusion scrap free of paint in Foshan was about 2,436 yuan/mt, and the price difference between A00 aluminum and shredded aluminum tense scrap was about 1,415 yuan/mt, both widening slightly again WoW. On the supply side, the tight raw material supply pattern remained unchanged, and the scarcity of compliant, invoiced aluminum scrap continued to rise, constraining scrap utilization enterprises' operations and procurement. Against this backdrop, some aluminum scrap yards...
18 hours ago
[SMM Steel] India Domestic Sponge Iron Jumps on Tight Supply
19 hours ago
[SMM Steel] India Domestic Sponge Iron Jumps on Tight Supply
Read More
[SMM Steel] India Domestic Sponge Iron Jumps on Tight Supply
[SMM Steel] India Domestic Sponge Iron Jumps on Tight Supply
[India Domestic] The domestic steel market stayed firm with prices rising across semis and finished steel. Sponge iron led the gains as higher coal costs and tight material supply continue to push prices up. Raipur billet increased by 5.24USD/tonne (500INR/tonne) to 450.78USD/tonne (43,000INR/tonne) EXW Raipur. PDRI sponge iron up by 6.29USD/tonne (600INR/tonne) to 308.27USD/tonne (29,400INR/tonne) EXW Raipur. Bellary PDRI sponge iron rose by 8.38USD/tonne (800INR/tonne) to 317.68USD/tonne (30,300INR/tonne) EXW Bellary. In Bellary, sellers are quoting sponge iron at 316.63-317.66USD/tonne (30,200-30,300INR/tonne), while buyers are bidding lower at 315.56-316.63USD/tonne (30,100-30,200INR/tonne). Despite this gap, very little actual business has been concluded so far. Market participants noted, the wider coal dynamics are shaping this trend. As coal prices rose, imported coal briefly became cost-competitive compared to domestic coal, so buyers are moving back to domestic coal. This shift has left material availability tight. Mumbai Rebar up by 2.90USD/tonne (200INR/tonne) to 530.56USD/tonne (50,600INR/tonne) EXW Mumbai. Ingot up by 1.05USD/tonne (100INR/tonne) to 488.52USD/tonne (46,600INR/tonne) EXW Mandi.
19 hours ago
Copper prices keep hitting new highs, downstream wait-and-see sentiment grows [SMM Secondary Copper Daily Review]
19 hours ago
Copper prices keep hitting new highs, downstream wait-and-see sentiment grows [SMM Secondary Copper Daily Review]
Read More
Copper prices keep hitting new highs, downstream wait-and-see sentiment grows [SMM Secondary Copper Daily Review]
Copper prices keep hitting new highs, downstream wait-and-see sentiment grows [SMM Secondary Copper Daily Review]
19 hours ago
Transportation, production curbs deter iron ore deliveries from Chinese ports - Shanghai Metals Market (SMM)