SHANGHAI (SMM): Inbound shipments of iron ore to China are expected to drop in October due largely to poor demand, Shanghai Metals Market’s ferrous branch Steelease foresees.
The arrivals of shipments registered a 13.10% month-on-month growth in September as the four largest overseas mines increased goods delivery during a traditionally peak season.
Data show that China imported 84.69 million tons of iron ore during September, up 9.81 million tons from August, and up 10.11 million tons from 2013’s September.
“Demand at Chinese steel plants, however, did not improve due to sluggish steel prices,” Steelease’s iron ore analyst Cristina Xu said.
Growing supply against soft consumption increased the downward pressure on iron ore price, stimulating purchases for future in September at lower prices.
Most of deals are scheduled to arrive in October, but some shipments will be delayed. This, coupled with dwindling sales at low price, will also negatively impact China’s iron ore imports in October, Steelease estimates.
Source: Shanghai Metals Market
