Iron ore inventory at major Chinese ports this week has dropped to 118.65 MnT assessed on 2nd April. The stocks have depicted drop of 2.5 MnT W-o-W as against 121.15 MnT assessed last week, as per data compiled by SteelHome consultancy. The port stocks have dropped to around 8.5 months low as the levels were last witnessed towards mid July at 115.35 MnT.
The increased Chinese demand amid improved construction activities have led to large discharge rates from the ports. However, the new shipment arrivals at Chinese ports remain on lower side.
Falling supplies – As per marked sources report to SteelMint, Indian low grade iron ore export assessment witnessed stability W-o-W at USD 55-56/MT, CFR China. Low grade fines export deals from India have been constantly low amid lockdown and lease expiry of major miners. Brazil’s National Mining Agency (ANM) as on Thursday (2nd Apr) said it would halt operations at 47 mining dams that failed to certify stability criteria, which includes about 25 dams of Vale SA. This would inturn lead to lower imports at Chinese ports for the upcoming weeks.
Chinese spot iron ore prices:
Chinese spot iron ore prices opened up this week at USD 82.55/MT, CFR China and owards end of the week it was assessed at USD 82.65/MT, CFR China towards weekend amid rebound in construction demand. However, steel margins did not witness much improvement for the week.
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