Significant increase in port arrivals caused iron ore inventory at 35 ports to accumulate again

As of June 28, iron ore inventory at the 35 ports tracked by SMM reached 145.44 million mt, up 330,000 mt WoW and 21.88 million mt YoY. The daily iron ore port clearance volume averaged 2.972 million mt, down 44,000 mt WoW but up 79,000 mt YoY.

According to SMM, port arrivals saw a significant increase this week. Steel inventory rose amid the off-season, and steel mills mainly made purchases as needed facing the continuous pressure on profits. Therefore, port clearance volume declined notably, and port inventory accumulated again.

Looking ahead to the next week, port arrivals are expected to remain at a high level. According to SMM, pig iron output will continue to show an upward trend and steel mills are expected to replenish some inventory, which will provide some support for iron ore demand and may continue to drive port clearance volume upward. However, considering that port arrivals remain high, port inventory may continue to rise.