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[SMM Iron Mine Review] Port inventory has reached its lowest level in nearly three years.
May 22,2020 17:10CST
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Today, Lian Tiezhong fell back, closed slightly higher in late trading, and the port spot market quotation was raised by 10 yuan / ton in early trading. However, with the rise of intraday threads and hot coil futures, the overall purchasing mood of steel mills is not high, and market activity has declined. Stacking is approaching the weekend, the weekly procurement of steel mills is basically completed. In terms of traders, the quotation mentality is better, in the afternoon with the market down in a narrow range, the bargaining space is slightly relaxed, today's transaction is weaker than yesterday. The turnover of PB powder in Shandong area is 730mur735 yuan / ton, and that of PB powder in Tangshan area is about 740 yuan / ton. Inventories at 35 ports tracked by SMM totaled 100.45 million tons as of May 22, down 1.33 million tons from last week and 17.84 million tons from a year earlier, the lowest level in nearly three years. At the same time, the average daily dredging capacity of the port increased by 36000 tons over the previous week to 2.805 million tons, an increase of 76000 tons, or about 2.8 per cent, over the same period last year. The demand for iron ore in domestic steel mills has led to a continuous decline in port inventories. Australian shipments continue to deliver power, and the proportion of shipments to China has risen slightly recently; Brazilian shipments have always been "unsatisfactory", and Brazilian resources in some domestic ports are slightly tight. However, taking into account the recent sharp rise in raw material prices, the profits of domestic steel mills have shrunk rapidly; steel mills are expected to continue the on-demand procurement strategy, while for low-grade and non-mainstream ore demand or a small increase, the decline in domestic port mainstream mine inventory is expected to slow. [SMM Steel]

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