China Port Stock Build Caps Rebound; Iron Ore Turns Range-Bound At High Levels
Iron ore futures rose then retreated today. The DCE most-traded I2701 contract closed at 687.5 yuan/mt, up 0.07% from the previous trading day. Spot prices of mainstream products at Qingdao port fell by about 3 yuan/mt on average. Trader activity was moderate, steel mill enquiries were few and spot trading volumes were low. Iron ore ...
Iron ore futures saw a volatile day at China's Dalian Commodity Exchange (DCE), closing up 0.07% at 687.5 yuan/mt. Spot prices at Qingdao port dropped by around 3 yuan/mt on average. Trader activity was steady, with few steel mill inquiries and low spot trading volumes. Port stocks at 35 major Chinese ports increased to 149.13 million metric tons as of November 6, up 1.08 million mt from the previous week, according to SMM.
While arrivals declined significantly this week, port stocks still built slightly. However, it is expected that arrivals will recover next week, and port stocks may continue to build. On the demand side, the average daily port outbound volume at the 35 ports fell by 55,000 mt to 3.12 million mt week-on-week. Hot metal output at steel mills decreased, contributing to the weakening outbound volumes.
The momentum from the earlier short-covering rebound has diminished, and the pressure from the port stock build remains, limiting upward potential for futures. Iron ore prices are expected to turn range-bound at high levels in the short term, a downgrade from yesterday's slightly more optimistic outlook. Analysts are advised to monitor the pace of arrivals and any changes in steel mill maintenance.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
