by Chris Becker
The iron ore complex started the new year in a complicated style yesterday with spot iron ore and Shanghai steel futures retreating despite a big monetary policy goosing by the PBOC to help spur on economic growth. Longer dated futures did better, although rebar took a hit as well as inventory levels spiked for the fourth week in a row:
Meanwhile, iron ore deliveries have declined for the second week in a row at major Chinese ports. Texture from Hellenic Shipping:
Meanwhile, iron ore deliveries leaving Australian ports fell 1.03 million mt from the prior week to 13.65 million mt. Shipments that departed Brazilian ports were estimated to shrink by 460,000 mt on the week, to 5.38 million mt.
The combined shipments of iron ore from Australian and Brazilian ports stood 4.75 million mt lower from the same period a year earlier.
Lower shipments from Australia and Brazil together with smaller arrivals at Chinese ports are expected to support near-term prices of seaborne iron ore as Chinese steelmakers continue their pre-holiday stockpiling after the New Year’s Day.