Iron Ore Inventories Across 35 Chinese Ports Build Up

As of December 1, iron ore inventories across 35 ports tracked by SMM totalled 112.08 million mt, up 1.59 million mt WoW but down 18.37 million mt YoY. Daily average shipments from the ports hiked by 38,000 mt WoW to 2.945 million mt in the week ending December 1. Iron ore arriving at Chinese ports increased by 13.45% in the week ending December 1. However, according to BF steel mills tracked by SMM, the operating rate and capacity utilization rate of the sample BF steel mills edged lower. Steel mills’ enthusiasm for production weakened in a slack season, but some refilled some iron ore stocks. In addition, port operating efficiency improved amid waning impact of cold weather.

Looking forward, there will be no iron ore supply and demand imbalance. Impact of fundamentals on iron ore prices will deserve to be monitored. Upcoming important economic meeting may boost iron ore market activity. It is expected that iron ore inventory build-up at the 35 ports will slow down in the future.