China iron ore port stocks dipped as demand improved

SHANGHAI, Apr 17 (SMM) – Inventories of seaborne iron ore at Chinese ports resumed their downtrend this week, as demand improved. The inventories fell for nine weeks in the past 10 weeks.

SMM data showed that iron ore stocks across 35 Chinese ports decreased 300,000 mt in the week ended April 17 to 108.14 million mt, after an increase of 1.57 million mt in the prior week. The stocks were 20.55 million mt lower than a year ago.

Daily average iron ore deliveries from the 35 ports increased 24,000 mt from the previous week to 2.75 million mt this week.

Despite slightly increased deliveries, iron ore stocks at the two ports in the top steelmaking hub of Tangshan inched up this week as arrivals rose. Low availability of certain low-grade ore and Brazilian ore at Jingtang port drove some steel mills to step up purchases from Caofeidian port.

Daily average iron ore deliveries from major ports in Shandong declined this week as steel mills there continued to restock in small quantities as needed, but fewer arrivals led to a week-on-week decline in port stocks.   

Iron ore deliveries from Chinese ports are likely to continue their moderate increase in the short term on the back of strong demand.