Iron ore port stocks decline as steelmakers restock

SHANGHAI, Sep 6 (SMM) – Inventories of iron ore across 35 Chinese ports dipped this week, after two consecutive weeks of gains, falling 350,000 mt from a week earlier to 110.3 million mt as of Friday September 6, showed SMM data.

On a year-over-year basis, port stocks declined 25.68 million mt.

Steelmakers stepped up restocking this week, as evidenced by moderate increases in in-plant stocks and greater deliveries departing from ports in east, south China and along the Yangtze River.

Daily iron ore deliveries from the 35 ports averaged 2.87 million mt this week, increasing for a third straight week and by 69,000 mt from the prior week. The reading was 203,600 mt higher than the same period last year.

Iron ore port stocks across China are unlikely to see consecutive gains in the short term, as shipments from Australia shrank in the last two weeks of August and as steelmakers will likely continue stockpiling in the run-up to the National Day holiday at the start of October.