Imported iron ore prices were volatile

Iron ore prices were volatile last week due to the end of pig iron output uptick and good macro news. Though maintenance of Australian port berth cut Australian shipments, ore arrivals at Chinese ports inched higher, resulting in rising port inventory. However, a 16,200 mt rise in daily pig iron output brought more ore demand, boosting spot ore prices. In terms of spot prices at ports last week, the spot prices of PB fines in Shandong stabilised.

With maintenance of Australian port berths against Rio Tinto’s train derailment, it may be difficult for shipments from Australia to increase this week. It is estimated that global shipments may remain stable or inch down. Despite this, port arrival estimates will still hike due to previously high shipments. This, coupled with a limited rise in daily pick-up volume from the ports amid slower pig iron output growth, will likely lead to sustained piling-up of ore stocks at ports, probably weighing down ore prices. Iron ore prices may remain volatile this week.