Evans Chamberlain Asset Management - China's Iron Ore Inventories Decrease
Evans Chamberlain Asset Management- Iron ore futures reach record high amid strong demand as stockpiles fall in China.
TAIPEI CITY, Taiwan, November 12, 2018 (Newswire.com) - Chinese iron ore futures surged to their highest level since March this year, boosted by strong demand for the raw material used in steel manufacturing. China is the world's biggest consumer of iron ore and last week the country's inventories decreased significantly.
Analysts at Evans Chamberlain Asset Management say China's stockpiles of iron ore at major ports decreased to 143.85 tonnes last week.
Since reaching an all-time high of 161.98 million tonnes in June this year, inventories at major ports fell 11 percent.
Evans Chamberlain Asset Management analysts say that steel manufacturing in China remains high and as a result, demand for iron ore is also very strong.
China's daily crude steel production increased to yet another record high 2.7 million tonnes last month as steel factories took advantage of better than usual profit margins before the start of seasonal production restrictions aimed at fighting severe pollution.
But Evans Chamberlain Asset Management analysts say this year's production curbs are likely to be less stringent than during last year's winter after the Chinese government permitted regional governments to dictate their own production restrictions instead of resorting to uniform restrictions throughout the nation.
According to official data released by SteelHome, the price of spot iron ore for delivery to China went up to $76.40 a tonne last week, the highest level seen since March this year.
China's manufacturing companies saw profit growth slow for the fifth straight month in September as sales of manufactured items and raw material eased. Analysts at Evans Chamberlain Asset Management say this could indicate that China's domestic demand will continue to decline in the coming months.
Source: Evans Chamberlain Asset Management