Demand for lump was weak, four major types of iron ore continued to diverge

Published: Jul 19, 2024 17:59

Source: SMM

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Iron ore inventory across the 10 major ports tracked by SMM increased by 40,000 mt this week.

Iron ore inventory across the 10 major ports tracked by SMM increased by 40,000 mt this week. Stocks of different types are as follows: fines (87.3 million mt, -330,000 mt), iron ore concentrates (10.01 million mt, -80,000 mt), pellet (4.39 million mt, -160,000 mt), and lump (12.61 million mt, +610,000 mt).

Due to the current high pig iron output and a certain restocking demand by steel mills, the stocks of fines, iron ore concentrates, and pellets all showed a decline. However, as the profits of steel mills remained under pressure and the cost-effectiveness of lump was relatively low, lump inventory slightly increased this week.

Looking ahead to next week, according to SMM, blast furnace pig iron output is expected to rise slightly, and steel mills may restock. Therefore, port clearance volume may see a slight increase. Port arrivals are expected to remain relatively high. As a result, port inventory is likely to increase again. Given the difference in cost-performance ratio, four types of iron ore are expected to diverge in stocks.

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