Latest Update in the China Iron Ore Market

As of January 15, iron ore inventories across 35 ports tracked by SMM totaled 118.12 million mt, an increase of 1.22 million mt from the previous week and 3.72 million mt year-on-year. Daily average deliveries from the 35 ports decreased 52,000 mt on a weekly basis to 2.69 million mt this week.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on January 15, 2021

SMM data showed that HRC stocks across social warehouses and steel makers expanded 143,300 mt or 4.59% from the previous week, and 35.52% on the year, to 3.27 million mt in the week ended January 14.

China steel rebar inventories continued to accelerate increases this week amid pandemic and cold weather.

An SMM survey showed that the average operating rate of BFs at Chinese steel makers inched up 0.4 percentage point on the week to 88.4% as of January 14. This was 0.26 percentage point higher than the same period last year. Some steel makers completed maintenance this week, which contributed to the rise in operating rates. 

The dollar drifted lower on Thursday in choppy trading, after Federal Reserve Chair Jerome Powell struck a dovish tone, saying the US central bank is not raising interest rates anytime soon and rejecting suggestions the Fed might start reducing its bond purchases in the near term.

DCE iron ore futures market rallied up today and the quotations in the physical port stock market mixed with small ups and downs. Mills showed less enthusiasms in purchasing and total transactions remained insipid situation.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on January 14, 2021