China’s Iron ore stockpiles at ports declining together with steel inventories

Iron ore inventories at Chinese ports have been on a downtrend for two months, reaching their lowest levels since late May 2024, despite a 25% drop in iron ore prices from May to September.

A chart showing the evolution of iron ore stockpiles at ports in Chinese ports from January to December, comparing data from 2022, 2023, and 2024, with each year represented by different colors from the IFCHOR GALBRAITHS color palette. Additionally, a grey-shaded area represents the 5-year range of variation.

These stockpiles have remained stable even as an unusually early destocking of steel products, primarily for construction, began in August. Following the recent surge in iron ore prices driven by China’s first quantitative easing measure to combat deflation last week, steel profit margins are under pressure, prompting steel mills to continue destocking until margins improve.

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