Iron ore demand fell as virus outbreak sent more steel mills into maintenance

Published: Feb 12, 2020 15:52
Supply may also weaken on the expectations of lower domestic production of iron concentrate amid virus impact

SHANGHAI, Feb 12 (SMM) – The amount of molten iron daily production affected by maintenance at steelmakers has climbed from 78,700 mt to 220,000 mt over the extended Chinese New Year holiday that ended on February 9, according to a SMM survey, as more mills scale back production to contain the spread of coronavirus. 


Post-holiday restrictions on raw material shipment and elevated stocks of finished products continued to impact the production of molten iron, with the daily affected volumes rising to 269,000 mt as of February 12. This is expected to reduce demand for iron ore by 457,000 mt per day. 

 

 


As squeezed profits keep steel mills purchase cautiously and the impact of COVID-19 delayed the resumption of downstream demand, iron ore deliveries from Chinese ports are likely to remain sluggish in the near term, which will keep iron ore prices under pressure. 


On the supply front, iron ore shipments leaving Australian ports fell on a weekly basis by 4.6 million mt, to stand at 9.75 million mt during February 2-8, as some ports in Western Australia was temporarily closed due to the impact of a tropical cyclone. 


Current stocks of seaborne iron ore at Chinese ports stand 12 million mt lower than a year earlier. This, together with expectations of lower domestic production of iron concentrate in February on virus impact, will see weak demand and supply of iron ore in the short term. 

 

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
Australia Reviews Anti-Dumping Duties on Galvanized Steel from India, Malaysia, Vietnam Amid Zinc Concerns
Sep 11, 2026 18:30
Australia Reviews Anti-Dumping Duties on Galvanized Steel from India, Malaysia, Vietnam Amid Zinc Concerns
Read More
Australia Reviews Anti-Dumping Duties on Galvanized Steel from India, Malaysia, Vietnam Amid Zinc Concerns
Australia Reviews Anti-Dumping Duties on Galvanized Steel from India, Malaysia, Vietnam Amid Zinc Concerns
On September 9, 2026, Australia initiated its second sunset review of anti-dumping measures on galvanized steel sheet from India, Malaysia and Vietnam, and separately launched a sunset review of countervailing measures on imports from India. The review covers July 2025-June 2026, with the final report expected by February 11, 2027. As galvanized steel is the largest end-use sector for zinc, the measures directly affect export costs and competitiveness, potentially impacting Australia’s domestic zinc demand and supply chain. Maintaining the duties would provide some protection for domestic steel and coating capacity, while termination could increase low-priced imports and affect regional zinc consumption. The final outcome remains subject to the authorities’ determination.
Sep 11, 2026 18:30
JCC Hongyuan Copper's $200M Expansion Project Aims to Boost Capacity to 550,000 mt by 2027
Sep 7, 2026 15:43
JCC Hongyuan Copper's $200M Expansion Project Aims to Boost Capacity to 550,000 mt by 2027
Read More
JCC Hongyuan Copper's $200M Expansion Project Aims to Boost Capacity to 550,000 mt by 2027
JCC Hongyuan Copper's $200M Expansion Project Aims to Boost Capacity to 550,000 mt by 2027
The 300,000 mt/year copper cathode expansion project of JCC Hongyuan Copper, a subsidiary of Jiangxi Copper Corporation, entered the pre-approval public notice stage of its environmental impact assessment on September 4, with a total investment of approximately 1.416 billion yuan. The project is planned to start construction in September 2026 and be completed in December 2027. Upon completion, JCC Hongyuan's total capacity will jump from 250,000 mt to 550,000 mt.
Sep 7, 2026 15:43
Japanese Yen Increases USD/JPY Drops Below 159 Amid Intervention Speculation
Sep 3, 2026 19:00
Japanese Yen Increases USD/JPY Drops Below 159 Amid Intervention Speculation
Read More
Japanese Yen Increases USD/JPY Drops Below 159 Amid Intervention Speculation
Japanese Yen Increases USD/JPY Drops Below 159 Amid Intervention Speculation
[SMM Precious Metal Express] The Japanese yen spiked sharply during Wednesday's trading, with USD/JPY falling below 159 and closing down 0.92% at 158.69, sparking speculation of Japanese currency intervention. The dollar index also dropped sharply, with a weaker dollar environment providing support for precious metals.
Sep 3, 2026 19:00