The mounting heaps of iron ore in Chinese ports just got bigger.
The world’s second-largest economy and biggest steel producer had a record 136.6 million tonnes of iron ore across 46 ports on May 26, increasing by 600,000 tonnes or 0.44% from the previous week, according to a survey by SteelHome.
That was the fifth consecutive weekly increase and stock piles have soared by 22.65 million tonnes, surpassing the 20.85 million added for all of last year, according to the survey.
This chart from SteelHome reveals is the rising stock levels
eaving it at the lowest level since October 14 last year. The commodity has dropped 39% from the multi-year high of $94.86 a tonne struck on February 21 this year.
Of the stocks, about 44.60 million tonnes or 33% belong to traders, SteelHome said. The stocks comprise of 15 million tonnes of lump, 2two million tonnes of pellet and 8.8 million tonnes of concentrate fines, it said.
SteelHome believes port stocks can support 43.5 days of steel produce in the country, increasing 0.2 day from May 15.