Iron ore port stocks increased amid lower deliveries from ports
Iron ore stocks across 35 Chinese ports totalled 116.36 million mt as of February 7, up 1.96 million mt from pre-holiday levels, but 12.76 million mt lower than a year ago, showed SMM data.
Daily average deliveries from the 35 ports decreased 364,000 mt from pre-holiday levels to 2.55 million mt this week. Staff at most companies worked at home due to the recent epidemic outbreak. A sharp decline in iron ore prices in the spot and futures markets sidelined traders. Steel mills in Shandong and south China showed little buying interest due to transportation restrictions.
In the top steelmaking hub of Tangshan, daily average deliveries from Jingtang port, Tangshan recovered to over 300,000 mt after the transport ban was lifted on February 1, while daily average deliveries from Caofeidian port remained around 200,000 mt.
Deliveries from ports are likely to pick up next week as steel mills increase purchases following the resumption of end-users.
Source: SMM News