Iron ore arrivals at Chinese ports soared 3.89 million mt on week
SMM estimates that 110 vessels carrying 16.08 million mt of iron ore arrived at major Chinese ports during November 24-30, rising 3.89 million mt from the week ended November 23.
This marked the third consecutive week of increase, with higher arrivals across all major Chinese ports. But the arrivals may see a sharp decline next week based on the delivery period.
Last week, iron ore deliveries leaving Australian ports recovered 320,000 mt from the prior week to 13.32 million mt, but this remained below the level during the same period a year earlier. Shipments that departed Brazilian ports were estimated to shrink for the second straight week by 560,000 mt, to stand at 6.36 million mt, lower from the weekly shipments of 8 million mt a year ago.
High margins of steel products supported domestic demand for iron ore. This, coupled with year-end stockpiling by steelmakers, will offer strong support to seaborne iron ore prices in December.
Steelmakers that produce with iron ore as feedstock still saw a profit of 800 yuan/mt for rebar as of December 3, SMM assessed based on imported iron ore prices of $88/mt.