Iron ore port stocks fell amid low unloading efficiency

SHANGHAI, Feb 14 (SMM) – Inventories of seaborne iron ore across 35 Chinese ports totalled 114.55 million mt as of Friday February 14, down 1.81 million mt from a week ago and 12.55 million mt lower than a year ago, showed SMM data.

Cargo unloading efficiency at ports remained low amid the epidemic outbreak while arrivals declined for three consecutive weeks, which accounted for the decline in port stocks. Ports in Tangshan and Shandong saw more significant declines than other regions.  

Daily average iron ore deliveries from the 35 ports increased 17,000 mt from a week ago to 2.57 million mt this week. Road transport in many regions has yet to recover, preventing deliveries from ports from increasing significantly.

Deliveries from ports are likely to remain low in the short term as steel mills undertake maintenance or cut output due to thinner profits, lower steel prices and rapidly growing inventories of finished goods.