Iron ore inventories across 35 ports monitored by Shree Metal Prices as of January 19 were 123.27 million mt, up 430,000 mt WoW but down 5.16 million mt year over year. Last week, the ports’ daily average shipments increased 59,000 mt wow to 3.06 million mt, but they decreased 53,000 mt YoY.
The need for iron ore among steel mills has increased. Some steel mills increased restocking, boosting shipments from the ports, in response to increased demand for iron ore and a sharp decline in the price of the commodity. Nevertheless, despite an increase in port arrivals, iron ore inventory remained high at the ports.
With the planned restart of some BFs, the operating rate of BFs this week resulted in an increase in the daily average production of pig iron, which helped to partially meet the demand for iron ore concentrate.
In certain places, steel mills will still be stockpiling ahead of the holidays. Shipments out of the ports are predict to stay high. Nonetheless, considering a surge in port arrivals this week, iron ore stocks at the ports are likely to accumulate.