Home / Metal News / Post CNY update on iron ore

Post CNY update on iron ore

iconFeb 24, 2021 16:05
Source:SMM
Iron ore inventories across 35 ports tracked by SMM totalled 119.85 million mt as of Tuesday February 23, an increase of 1.96 million mt from the previous week. The increase was contributed by some ports in Shandong, Tangshan and Yangtze River region. Daily average deliveries declined 352,000 mt to 2.62 million mt as Tangshan intensified heavy pollution control measures during CNY. The daily average deliveries from ports are expected to gradually pick up as some steel mills plan to increase inventory after the holiday.

SHANGHAI, Feb 24 (SMM)This is a roundup of post-CNY update on iron ore. 

Seaborne ore update: Iron ore inventories across 35 ports tracked by SMM totalled 119.85 million mt as of Tuesday February 23, an increase of 1.96 million mt from the previous week. The increase was contributed by some ports in Shandong, Tangshan and Yangtze River region. Daily average deliveries declined 352,000 mt to 2.62 million mt as Tangshan intensified heavy pollution control measures during CNY. The daily average deliveries from ports are expected to gradually pick up as some steel mills plan to increase inventory after the holiday.

According to data tracked by SMM, 84 ships arrived at domestic main ports from February 14 to 20. Arrivals of cargoes are estimated to stand at 12.84 million mt, up 550,000 mt from pre-CNY holiday. Post-holiday supply imported iron ore was relatively loose in the first week. However, shipments from Australia fell by 2.31 million mt to 15.44 million mt while Brazil declined 350,000 mt to 5.98 million mt; domestic steel prices have risen sharply and met coke prices are likely to decline. Demand for raw materials from mills amid rising profits. Iron ore supply is expected to trend lower.

Pig iron output is expected to rise amid the end of maintenance at mills. According to SMM statistics, pig iron output is expected to decline 308,000 mt to 1.82 million mt in early March amid maintenance. Part of the mills said that their raw materials inventories like iron ore can be maintained until February 26 while mills still have demand for iron ore. On the whole, supply-demand of iron ore remained tight, supporting imported iron ore prices.

On the domestic ore side, some mines have no holiday during the CNY amid the pandemic and mines that have holidays resumed production earlier from 2020. Mines with holidays resumed work on February 18-21, or after February 26 and the latest will be after the end of the NPC and CPPCC sessions or after the weather became warmer. The conditions of work resumption were better than February 2020 when many mines suspended operation and capacity utilisation rate was 51%, the lowest point.

  • Mines in Hanxing, Hebei generally stopped production before the CNY, and resumed production after the NPC and CPPCC sessions. According to SMM, mines in Hanxing have not resumed production for the time being, and basically resume production after the end of the two sessions;
  • In January 2021, an underground explosion accident occurred at a gold mine in Shandong, resulting in 10 deaths and 1 missing. On February 17, 2021, Shandong Emergency Management Department carried out a safety inspection of underground non-coal mines, which is expected to conclude at the end of March. According to the SMM survey, mines in Shandong are basically all underground ones. Under this inspection, mines in south Shandong have basically suspended production for rectification, with a greater impact than central area. Only large mines are still in production in central-Shandong, and small mines have also suspended production. According to local mines and traders, the current supply in Shandong was modest, but is likely to decline sharply after 15 days. Iron ore concentrate output in Shandong was 1.27 million mt in January.
  • In Shanxi, a small number of mines that suspended or reduced production during the CNY have resumed operation since February 21, and most of the mines will not resume production until afterFebruary 26. According to practice, regional supply will not be recovered until the end of March.
  • Some mines in north China will resume production after March amid cold weather. Part of the mines in Liaoning suspended production during the CNY and resumed production on February 18, some of which failed to do so amid the mining license issues; Part of the small mines in Heilongjiang, Jilin will resume production in mid to late March; mines in Xinjiang will resume production in April.
Iron ore
Post-CNY

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news

SMM Events & Webinars

All