As of April 16, iron ore inventories across 35 ports tracked by SMM totalled 126.55 million mt, up 1.85 million mt from a week ago and 18.95 million mt from a year ago due to increased arrivals. Port inventory in Tangshan rose significantly due to production restrictions at some of the local steel mills. Daily average deliveries from the 35 ports increased by 122,000 mt from a week ago to 2.67 million mt last week as steel mills outside Tangshan increased purchase. Daily average deliveries from two ports in Shandong increased 30,000 mt to 545,000 mt, makring three consecutive weeks of growth. In light of falling departures from Australia and Brazil and strong demand for mainstream medium and high-grade ore amid high profits, the increase in port inventory is likely to slow down. DCE iron ore futures continued to performed strongly today, physical port quotation this morning increased by 10-15yuan/mt compared to yesterday. Quotation of PBF at Shandong port was around 1200 yuan/mt in the morning. Some steel mills tend to buy on their demand today while some traders gave some bargain space to achieve successful deals. PBF at Shandong port dealt as 1188-1190yuan/mt today, up 3-5yuan/mt from yesterday’s highest deal price.
Source: Metals Market Index (MMi)