In a monthly steel market comment, Platts, a unit of S&P Global Commodity Insights, had a cautious outlook for iron ore: “Expectations have risen on China iron ore demand increasing after easing of COVID-19 measures, while iron ore demand could pick up when mill restocking needs resurface after the upcoming Lunar New Year holidays in China.
“However, more steel mills may reduce operation rates if steel production margins remained depressed, which might add some demand pressure for iron ore in January.”
As of January 13, iron ore stocks at Chinese ports were 133.59 million tonnes, down 15 per cent on the year, but up 1.74 per cent on the week, Platts reported. In the week to January 13, ore stocks for trade were at 79.52 million tonnes, down 15 per cent on the year, but up 0.66 per cent on the week, with stocks enough for 41 days.
On January 13, Chinese steel sector’s imported iron ore inventories were at 102.4 million tonnes, down 11 per cent year on year, but up 2.9 per cent on the week.
That indicated stocks would last for 37 days, down 13 per cent on the year, but up 2.5 per cent on the week, Platts said.