Iron Ore Arrivals at Chinese Ports Down 2.16 million mt on Week

SHANGHAI, Nov 2 (SMM) – According to data tracked by SMM, 80 ships arrived at domestic main ports from October 25-31. Arrivals of cargoes are estimated to stand at 11.89 million mt, down 2.16 million mt from the previous week and 2.9 million mt year on year.

Shipments that departed Australian ports were estimated to increase 1.93 million mt week on week to 19.58 million mt, up 2.83 million mt on the year; and that from Brazilian ports decreased 0.71 million mt to 3.46 million mt on a weekly basis, down 5.04 million mt on the year. The total arrivals of imported ore dropped from the prior week, but the combined shipments from Australia and Brazil rose.

In China, many steel mills have suspended the production of their blast furnaces amid environmental protection warnings triggered by poor air conditions in Hebei, Henan and Shanxi, coupled with the extreme weathers in north China. Therefore, the output of liquid iron is unlikely to pick up. Meanwhile, the port inventory of imported ore has exceeded 140 million mt, which is unable to support iron ore prices from the fundamental front. As such, iron ore prices will stay weak.