Tight supply from Australia, Brazil to support near-term iron ore prices

SHANGHAI, Feb 18 (SMM) – SMM estimates that there were 76 vessels carrying 10.41 million mt of iron ore arrived at major Chinese ports during February 9-15, up 160,000 mt from the week ended February 8. 

During the same period, iron ore deliveries leaving Australian ports edged up 420,000 mt on the week to 10.17 million mt. The recovery was capped on the back of the recent tropical cyclone in Australia. Miner Rio Tinto has lowered its forecast for the volume of iron ore it expects to ship from the Pilbara region in 2020, by 6-9 million mt to 324-334 million mt, due to the tropical cyclone impact.

Shipments that departed Brazilian ports were estimated to fall 980,000 mt on the week, to 4.13 million mt. SMM expects the continued tight supply of iron ore to lend some support to near-term prices.