China: BF mills’ imported iron ore stocks hit 9-month low

• Australian iron ore prices decline by 1% w-o-w amid limited demand
• Post-holiday restocking subdued, only 7% of BF mills earning profits

Stockpiles of imported iron ore sintering fines held by Chinese integrated steelmakers continued falling in the past week amid mills’ steady consumption and slow replenishment of the feed, Mysteel’s latest survey showed.

As of 14 October, total inventories of imported iron ore sintering fines piled at the yards of the 64 domestic blast furnace (BF) steelmakers under Mysteel’s tracking had fallen to 12.3 million tonnes, lower by 4.1% from a week earlier and marking the lowest level since mid-January.

Although the mills’ net consumption during the seven-day National Day holiday had caused their in-plant iron ore stocks to drop significantly, their post-holiday restocking demand remained subdued, market sources observed.

During 12-14 October, the total volume of imported iron ore traded at Chinese major ports averaged some 667,300 tonnes/day, still hovering around the lowest level since July, according to Mysteel’s tracking.

Persistent losses on operations forced Chinese BF mills to control their feed purchases cautiously, Mysteel Global noted. By 8 October, only around 7% of the 247 BF steelmakers under Mysteel’s survey could make some profits on selling their steel products.

On the other hand, the combined daily usage of imported iron ore sintering fines at the 64 BF mills Mysteel checks stood at 606,800 t/d during 8-14 October, edging up 300 t/d from the prior week. However, the ratio of sinter ore in the BF burden mix among these surveyed mills dipped for the second straight week by another 0.01 percentage points on week to 73.44%, Mysteel’s survey showed.

At their current consumption rate, the 64 steelmakers could maintain production for about 21 days with their existing stocks of imported iron ore sintering fines, unchanged from the previous week, Mysteel assessed.

With limited buying interest among steelmakers, prices of imported iron ore softened in the past week. By 14 October, Mysteel SEADEX 62% Australian Fines had slipped 0.9% on week to $91.8/dmt CFR Qingdao, hovering around the lowest level since September 2024.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.