From Bloomberg:
- Iron ore inventories at ports in China fell to the lowest level in almost 11 months
- Mills replenished holdings after prices fell and local output slowed during the winter
- The stockpiles shrank 0.9 percent to 100.6 million tons as of January 2, shrinking for a sixth week
- The lowest level since February 14, and the sixth weekly drop is the longest run of declines since April 2013
- Inventories dropped 12 percent since peaking at 113.7 million tons in July
- Iron ore prices opened 2015 by posting the biggest weekly gain in 18 months amid speculation China will take more steps to spur growth
- Steel mills typically restock in the winter before construction activity picks up in the summer
- “It’s reasonably pleasing stockpile levels,” James Wilson, an analyst at Morgans Financial in Perth, Western Australia, said before the data was released. “When prices are cheap, the steelmakers tend to go and replenish their stockpiles because their steel prices are a bit better and they make more margin.”
