China iron ore port stocks rose after 8 weeks of decline

SHANGHAI, Apr 10 (SMM) – Inventories of seaborne iron ore at Chinese ports rose this week, after eight consecutive weeks of declines, as arrivals increased while demand dipped.

SMM data showed that iron ore stocks across 35 Chinese ports increased 1.57 million mt in the week ended April 10 to 108.43 million mt, after a fall of 910,000 mt in the prior week. The stocks were 23.5 million mt lower than a year ago.

Daily average iron ore deliveries from the 35 ports decreased 9,000 mt from the previous week to 2.73 million mt this week.

Arrivals of seaborne iron ore across major Chinese ports and shipments from Australia and Brazil have been increasing since the end of March, while deliveries from ports failed to improve further as mills were cautious about procurement. Port stocks stemmed their downtrend this week as a result.

Iron ore stocks across Chinese ports are likely to extend their increase in the short term, in anticipation of a further increase in arrivals and as mills remain cautious and some will conduct maintenance.