China: Iron Ore Inventory at 35 Ports Accumulated
SMM statistics showed that iron ore inventories across the 35 ports in China totalled 124.38 million mt as of May 19, up 1.95 million mt on a weekly basis, but down 5.29 million mt from the previous year. The daily average shipments from the 35 ports decreased 101,000 mt on a weekly basis to 2.76 million mt last week.
Iron ore prices rose, and market activity weakened last week. According to the port data tracked by SMM, the arrival volume at domestic major ports declined slightly last week. Some steel mills resumed production during the week, and the domestic operating rate rebounded.
The average daily pig iron production supported the demand for iron ore. Overseas shipments may fall. Although the demand for finished products is weak, the steel mills are still profitable and will not cut output. The output of pig iron is unlikely to fall. Moreover, due to the rebound in the futures market, the iron ore market sentiment has improved, and the trading atmosphere has gradually warmed up. The current contradiction between supply and demand has not grown significantly, and it is expected that the inventory accumulation at 35 ports will narrow this week.