SHANGHAI, Apr 24 (SMM) – Inventories of seaborne iron ore at Chinese ports extended their decline this week, propelled by reduced arrivals, stable demand as well as the start of stockpiling by mills ahead of the Labour Day holiday.
SMM data showed that iron ore stocks across 35 Chinese ports decreased 540,000 mt in the week ended April 24 to 107.6 million mt, after a decline of 300,000 mt in the prior week. The inventories fell in 10 of the past 11 weeks. Compared to a year earlier, the stocks were 17.86 million mt lower than a year ago.
Daily average iron ore deliveries from the 35 ports increased 33,000 mt from the previous week to 2.78 million mt this week as demand remained robust in the lead up to the Labour Day holiday, a five-day break starting on May 1.
Increased deliveries, coupled with reduced arrivals contributed to this week’s decline in iron ore stocks at Jingtang and Caofeidian ports in Tangshan, as well as major ports in east China’s Shandong. SMM learned that demand for iron ore from steel mills in Shandong and surrounding regions remained strong and that some mills plan to step up stockpiling ahead of the five-day holiday.
Iron ore deliveries from Chinese ports are expected to continue to climb next week, as pre-holiday stockpiling goes on.
