Mild demand uptick slowed down piling-up of iron ore inventory at 35 Chinese ports

As of March 15, iron ore inventory across 35 ports tracked by SMM totaled 139.15 million mt, up 1.09 million mt WoW and 6.03 million mt YoY. Daily average iron ore pick-up from the ports was 2.878 million mt, up 43,000 mt WoW but down 30,000 mt YoY. Surging port arrivals and more port unloading volume in better weather kept ore inventory rising. Despite falling pig iron output amid maintenance of some BFs, steel mills’ buying was fanned by the free-fall in ore prices, increasing shipments from the ports. Overall, with a steep rise in port arrivals, iron ore stocks still built up.
Looking ahead, restart of BFs will push up pig iron output, underpinning iron ore demand somewhat. Shipments from the ports may grow. Port arrivals may remain high in a short run. Overall, the iron ore inventory may keep piling up this week.