As port arrivals increased significantly, iron ore inventory at 35 ports continued to accumulate

As of July 5, iron ore inventory at the 35 ports tracked by SMM was 146.04 million mt, up 610,000 mt MoM and 23.49 million mt YoY. The daily iron ore port clearance volume averaged 3.029 million mt, up 57,000 mt MoM but down 4,000 mt YoY.

According to SMM, port arrivals remained at a high level this week. Pig iron output continued to increase and steel mills may make certain restocking, supporting the demand for iron ore concentrates, leading to an increase in port clearance volume. However, port inventory continued to accumulate amid high port arrivals.

Looking into next week, port arrivals are expected to remain at a high level. According to SMM, blast furnace pig iron output shows a trend of declining from the peak. In the off-season for steel demand, the pressure of steel inventory accumulation still exists. Therefore, steel mills mainly purchase iron ore concentrates as needed, which may lead to a slight decline in port clearance volume. Overall, iron ore inventory at 35 ports is expected to continue its accumulation trend next week.