As of August 6, iron ore inventories across 35 ports tracked by SMM totaled 118.46 million mt, down 2.24 million mt from the previous week, but up 12.24 million mt year-on-year. Daily average deliveries from the 35 ports increased 323,000 mt on a weekly basis to 2.6 million mt this week. Port arrivals in Tangshan have been declining for three consecutive weeks and deliveries from ports picked up after the impact of bad weather has receded, allowing inventory at local two ports to fall 2.1% to 28.51 million mt. Port inventory in the Yangtze River region also declined as steel mills went bargain hunting after typhoon ended. However, the decline in port inventory may slow down as steel mills will restock only as required under output cut policy. Another 30-35yuan/mt price falling happened in the physical port stock market today as DCE iron ore futures market showed no improvements. Majority steel mills remained on-demand procurements and PBF was closed at 1175-1215yuan/mt in Shandong market. Along with steel mills’ increasing purchase, iron ore prices in the short run may enjoy certain supports.
Source: Metals Market Index (MMi)