The iron ore inventory accumulation at 10 major ports increased, four major types of iron ore continued to diverge

Iron ore inventory across the 10 major ports tracked by SMM increased by 2.34 million mt WoW last week. Stocks of different types are as follows: fines (88.99 million mt, +1.69 million mt), iron ore concentrates (10.28 million mt, +270,000 mt), pellet (4.43 million mt, +40,000 mt), and lump (12.95 million mt, +340,000 mt).

Due to a significant increase in port arrivals, all types of iron ore showed inventory accumulation. The inventory accumulation of fines was particularly notable, while lump, with its current low cost-performance ratio and weak market demand, showed a slight inventory accumulation. Demand side, with profits under continuous pressure, steel mills mainly restocked as needed. Overall, port inventories showed an accumulation trend.

Looking ahead to this week, according to SMM, blast furnace pig iron output may slightly increase, and steel mills have certain restocking expectations, which may lead to a slight rise in port clearance volume. Port arrivals are expected to remain at a high level. Therefore, port inventories are likely to accumulate again. Given the difference in cost-performance ratio, four types of iron ore are expected to diverge in stocks.