As of August 27, iron ore inventories across 35 ports tracked by SMM totalled 121.46 million mt, up 1.12 million mt from a week ago and 14.18 million mt from a year ago. Daily average deliveries from the 35 ports increased 26,000 mt on a weekly basis to 2.70 million mt last week. Prices of imported ore stopped falling and stabilised. Some steel mills purchased more actively, but the overall purchase was cautiously maintained on the rigid demand. The imported ore arrivals at Shandong ports increased significantly, but the operation efficiency at ports declined, so the port inventory increased slowly. Port inventory in the Yangtze River region continued to rise due to the sluggish purchase from local steel mills. The port congestion has been alleviated in some areas, while the purchases by steel mills remain low. Port inventory is expected to increase further. DCE iron ore futures rise slightly throughout the day, the spot quotation has increased by 10yuan/mt in the morning. approaching to weekend, steel mills are less enthusiasm to buy much more iron ore today. Some traders give more bargain space around 0-5yuan/mt to make successful deal. PBF at Tangshan port dealt 1045-1050yuan/mt, up 5-10yuan/mt over yesterday. PBF at Shandong port dealt 1050yuan/mt, up 10-15yuan/ mt over yesterday.

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Source: Metals Market Index (MMi)