Record high stockpiles at Chinese ports ‘will only have short-term impact’

The record high iron ore stockpiles at China’s ports will only have a short-term impact on prices, the Singapore Exchange’s iron ore conference heard on Wednesday May 7.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

They will also not affect top-tier producers’ operations, officials of several miners told delegates.

Stockpiles of the steelmaking raw material at Chinese ports totalled 113.06 million tonnes as at May 4, a record high, according to local data provider Mysteel.

"[The level] is less than two months’ worth of consumption. This may have a short-term impact on prices, but not much in the medium term,” Zhuang Binjun, Fortescue Metals Group’s gm for business development, said.

While Chinese port stockpiles have risen to a record high, steel production in the country is also at a similar historical level, he pointed out.

FMG is confident about the growth of demand in Asia in years to come.

Vale, the world’s largest iron ore producer, shares a similar view.

The port stockpiles have never gone below one month’s worth of consumption, Vale’s global director for iron ore marketing and sales Claudio Alves pointed out. Fluctuations are normal and do not affect the market fundamentals, he added.

The miner does not see a need to slow down production because of short-term price changes. It also has no plans to delay any of its expansion plans as it is one of the most cost competitive iron ore producers.

Iron ore stockpiles at Chinese ports had remained at a stable level of 70 million tonnes for nearly a year – from September 2012 to June 2013 – before jumping above the 100-million-tonne mark, partly due to an increase in financing trades, Baosteel Corp’s assistant president Zhang Dianbo said.

What to read next
Following a six-week consultation period, Fastmarkets can confirm it will amend the calculation method for all the average functions on the Fastmarkets platform from Wednesday March 1, 2023.
Consolidation, the recycling of electric vehicle batteries, US steel exports and the benefits of sustainable steelmaking were key talking points at Fastmarkets’ Scrap & Steel 2023 conference in Dallas in January
Green shoots of increased demand will emerge in US ferrous markets courtesy of the Biden administration’s trillion-dollar infrastructure package in 2023, Schnitzer’s executive vice president and chief strategy officer Richard Peach said at Fastmarkets’ Steel and Scrap Conference 2023 in Dallas, Texas
US special bar quality steel prices rose in January in line with rising scrap and alloy costs, according to market participants
European metal industry association Eurometaux has called on the European Commission to follow the lead shown by the Inflation Reduction Act and deliver a “powerful” policy to support the industry in the EU while it tries to keep up with the move to a new generation of energy markets
The fallout from Russia’s invasion of Ukraine is changing global trade flows for bauxite, with Brazilian material once again flowing into China and with the introduction of export restrictions elsewhere likely to influence availability through 2023
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.