Operating Rates of Domestic Pelletising Plants Increased Amid Falling Iron Ore Concentrate Inventory

SHANGHAI, Mar 28 (SMM) - The inventory of pellets at ten ports increased 8.4% on a weekly basis to 6.69 million mt.

The inventory of fines fell 0.7% to 65.41 million mt from the previous week, that of concentrates decreased 7.2% to 7.23 million mt, and that of lump ores fell 1.2% to 13.78 million mt. The operating rates of pelletising plants increased, pushing up the demand for iron ore concentrates. The growing output of domestic pellets thus weighed on the demand for pellets in the port inventory. The operating rates and capacity utilisation rates of blast furnace increased and thus the output of pig iron rose further, supporting the consumption of iron ore. In addition, the declining profits of steel mills weighed on lump ore demand again. In the follow-up stage, the output of pig iron is unlikely to increase significantly, and the high costs of steel mills will limit their purchasing demand. It is expected that the inventory at ten ports will decline this week.