Reduced iron ore shipments from Australia and Brazil prop up Chinese market
A total of 93 vessels carrying 15.79 million mt of iron ore arrived at eight major Chinese ports during June 28-July 4, SMM estimates. This was down 400,000 mt from the prior week but up 1.95 million mt from the previous year.
The amount of arrivals in China’s top steelmaking city of Tangshan continued to edge higher on the week while shipments arrived in Shandong were significantly lower than a week ago.
For the same week, iron ore deliveries leaving Australian ports fell 860,000 mt on the week to 17.56 million mt. This was 5.52 million mt, or close to 46%, higher as compared with the same period last year. The proportion of Australian iron ore destined for China declined from the previous week.
Shipments that departed Brazilian ports were estimated to dip 970,000 mt from the prior week to 6.9 million mt, about 830,000 mt higher than the level of the same period last year.
It remains to be seen whether the anti-smog measures in Tangshan will cause a significant impact on local output. This, coupled with reduced delivery from Australia and Brazil in the near-term, remains supportive of iron ore futures and spot markets.