SMM

As of May 16, SMM data showed that the total inventory at 35 ports was 139.4 million mt, a decrease of 260,000 mt WoW. The daily average port pick-up volume of imported ore was 3.095 million mt, an increase of 76,000 mt WoW. Currently, port arrivals remain at a high level. In terms of port cargo pick-up, despite recent market rumors of production restrictions in the steel industry, due to the overall profitability of steel mills, enterprises have low willingness to voluntarily restrict production. Pig iron production remains at a relatively high level, providing some support for the demand for iron ore, and port pick-up volume is on an upward trend. Overall, port inventory has shown a slight decrease. Looking ahead to next week, SMM data indicates that pig iron production from blast furnaces at steel mills may decline, with demand support weakening. Coupled with the still high port arrivals, it is expected that the overall port inventory may increase slightly.