Iron ore prices experienced a downturn last week, according to ANZ, as China’s steel industry exhibited distinct indications of seasonal slowdown. A survey conducted by Mysteel indicated a decrease in capacity utilisation rates alongside reduced daily hot metal production across various mills. This points to the customary year-end deceleration taking hold. Blast furnace operating rates have also registered a decline.
Concurrently, the supply side is gaining momentum. Shipments originating from Australia, encompassing Port Hedland, increased to 9.6 million tonnes during the final week of November. This represents an increase from the 8.5 million tonnes recorded in the preceding week, ANZ reported.
Consequently, inventory levels are on the rise. As per Steelhome, stockpiles at Chinese ports witnessed a jump of 2.4 per cent, reaching 142.4 million tonnes last week. This increase in port stockpiles, paired with an overall weakening in steel demand, is putting downward pressure on market sentiment as the year draws to a close, according to ANZ. The growing supply is overhanging on the market.
