SHANGHAI, Dec 6 (SMM) – Inventories of iron ore across Chinese ports declined for a second straight week this week, as demand from the top steelmaking hub of Tangshan remained robust.
SMM data showed that iron ore stocks across 35 Chinese ports decreased by 670,000 mt from a week ago to 113.5 million mt as of December 6, 13.44 million mt lower than a year ago.
For the same week, iron ore deliveries from the 35 Chinese ports averaged 2.89 million mt per day, up 128,000 mt from the prior week.
With Tangshan steelmakers keen to stockpile, combined daily iron ore deliveries from Caofeidian and Jingtang ports, two major ports in Tangshan, stood at close to 700,000 mt this week.
Major ports in Shandong saw deliveries barely unchanged this week, as steel mills purchased on demand. Some mills plan to begin stockpiling for the upcoming holiday season in late December.
Daily average iron ore deliveries from some ports along the Yangtze River rebounded this week, growing expectations that steel mills there will stockpile in the run-up to the Chinese New Year holiday.
Iron ore arrivals at Chinese ports are likely to decline next week, which will lend strong support to spot prices.
