China iron ore port stocks continues to fall as port inventory rises
Iron ore futures in China touched a three-week low on Friday and posted their second consecutive weekly decline, as prospects of tepid steel demand over winter weighed on prices of the key steelmaking raw material.
Benchmark Dalian iron ore futures fell as data showed the inventory of the steelmaking material at Chinese ports had climbed to the highest in more than a month.
Dalian Commodity Exchange’s most-traded iron ore contract, with January 2020 expiry, finished 2.8% lower at 600 yuan ($85.95) a tonne, after hitting 599.50 yuan just before the trading ended, its weakest since Oct. 18.
SMM data showed that iron ore stocks across 35 Chinese ports decreased by 350,000 mt from a week ago to 116.45 million mt as of Nov 8, after a drop of 2 million mt in the prior week. This was 14.38 million mt lower than a year ago.
The latest weekly figure is the highest since the second week of June.
The iron ore benchmark climbed to a record of 924.50 yuan a tonne on July 16 and has risen more than 100% this year amid supply outages in top exporters Australia and Brazil, and robust demand in China.
Maritime Business World