China iron ore port inventories extended decline as arrivals reduced
Inventories of seaborne iron ore at Chinese ports continued to trend lower last week, as arrivals from Australia and Brazil declined while demand remained robust despite escalated production curbs aimed at controlling air quality during China’s “two sessions.”
SMM data showed that iron ore stocks across 35 Chinese ports decreased 1.07 million mt in the week ended May 29 to 99.39 million mt, some 15.46 million mt lower than a year ago.
The stocks have fallen for seven consecutive weeks, refreshing three-year lows, as high operating rates at steel mills keep demand for raw material—iron ore—strong.
Last week, daily average deliveries from the 35 ports decreased 54,000 mt from the prior week to 2.75 million mt, as mills restocked only as needed.
Stocks of iron ore at major ports in Shandong continued to fall last week as fewer cargoes arrived, while stocks at Jingtang port in Tangshan rose due to increased arrivals.
Iron ore stocks at Chinese ports are likely to fall slower as shipments from Australia and Brazil have surged and mills in the top steelmaking hub of Tangshan may face stricter production curbs in June.
Source: SMM News