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Friday, February 10, 2012

Iron ore stocks at Chinese ports approaching alarm line

Friday, 10 Feb 2012

Mr Zhang Chunliang scheduler from Dalian Port Ore Terminal Company Limitev said that iron ore piled at docks in Dalian Port can be seen everywhere, most of which are shipped from Brazil and Australia. Although current capacities are approaching the alarm level, more ships are on the way.

Mr Zhang said that mills and traders usually take cargos away soon after unloading. Impacted by gloomy downstream demand since last year, there is an obvious slowdown in taking deliveries. They had loading and unloading of around 2.5 million tonnes in January 2011 but the figure has now fallen to 1.6 million tonnes in this January.

He said that this is not the only case many other ports in China are also facing full yards. Period of storage of some cargos even exceed half a year, versus the normal three months.

Up to February 3rd 2012, iron ore inventory at 36 Chinese ports totaled around 99.15 million tonnes. Most traders say demand for spot port will improve this week but are only cautiously optimistic over the question if prices will step up adding mills are seeing deficit, downstream steel consuming industries are slowing down and large rises will be confined by sizable port inventories.


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