Iron ore inventory at 10 major ports slightly fell, with significant reduction in stocks of lump and pellet

Iron ore inventory at 10 major ports tracked by SMM decreased by 540,000 mt WoW. Stocks of different types are as follows: fines (89.14 million mt, +150,000 mt), iron ore concentrates (10.28 million mt, flat), pellet (3.97 million mt, -460,000 mt), and lump (12.72 million mt, -230,000 mt).

Due to the low arrivals last week and weak market demand, some varieties of iron ore saw a decrease in inventory. Specifically, domestic iron ore and pellets were priced relatively high, which promoted the price-performance ratio of imported lump and pellets, leading to better demand and decreased inventory. On the other hand, demand for fines remained weak, leading to continued increase in port inventory.

Looking ahead to this week, SMM predicts that blast furnace pig iron production may further decrease and port clearance speed will slow down. The expected volume of arrivals will return to normal levels, and total port inventory may increase again. Given the difference in cost-performance ratio, four types of iron ore are expected to diverge in stocks.