Iron ore imports at Rizhao port double in January
According to the port official, Rizhao port, one of China's major handling ports of ore imports, has seen imported iron ore double from last December to 5.4 million tonnes in January coal throughout tonnage up 37.8% to 1.74 million tonnes. The major driver is the increased purchase from smaller mills who have resumed production. Shandong province has started construction of several highways and railways prior to Chinese New Year Holiday, which has bolstered demand for construction materials like steel and cement. Therefore, lower end steel plate market has also shown a sign of pick up in the province.
Local steel mills like Weifang Steel, Linyin Steel and alikes in nearby provinces such as Shanxi, Hebei and Henan have swiftly restarted production since lower-priced spot ore imports are readily available right now.
Mysteel data reveals that imported iron ore piling at China's major seaports continue to fall off since fourth quarter of last year, sliding to 58m tons in mid-Jan, off 25% from the peak 90m tons in last Aug and Sep. The destocking has driven up freight rates significantly.
Baltic Dry Index, a measure of shipping costs for commodities, rose nearly threefold from a record low of 663 on December 5th to 1815 on Tuesday. However, leading mills go on to cut production and it would take some time for them to work down the ore stock at the ports.
Local steel mills like Weifang Steel, Linyin Steel and alikes in nearby provinces such as Shanxi, Hebei and Henan have swiftly restarted production since lower-priced spot ore imports are readily available right now.
Mysteel data reveals that imported iron ore piling at China's major seaports continue to fall off since fourth quarter of last year, sliding to 58m tons in mid-Jan, off 25% from the peak 90m tons in last Aug and Sep. The destocking has driven up freight rates significantly.
Baltic Dry Index, a measure of shipping costs for commodities, rose nearly threefold from a record low of 663 on December 5th to 1815 on Tuesday. However, leading mills go on to cut production and it would take some time for them to work down the ore stock at the ports.