SHANGHAI, Oct 25 (SMM) – Inventories of iron ore across Chinese ports continued to rise this week, as demand weakened after steelmakers were required to cut production to combat heavy smog.
SMM data showed that iron ore stocks across 35 Chinese ports rose 1.28 million mt from a week ago to 118.79 million mt as of October 25, after a buildup of 870,000 mt in the previous week.
Stocks declined 14.2 million mt on a year-on-year basis.
Port stocks in Tangshan were 3 million mt higher than the levels seen before the National Day holiday, indicating strong inventory pressure, bolstered by greater arrivals and intensified anti-smog measures.
Regions including Shandong and Shanxi also issued alerts for heavy air pollution and ordered some steel mills to slash production for five days.
This subdued demand for iron ore, with the daily average iron ore deliveries from the 35 Chinese ports slipping 163,000 from the prior week to 2.62 million mt in the week ended October 25. The reading was 147,000 mt lower than the same period last year.
Chinese ports are likely to see greater iron ore deliveries next week, as smog alerts have been lifted.