Supplies of iron ore in the Chinese market are likely to continue to rise in a short term because deliveries are arriving Chinese ports, and shipments departing foreign ports continue to rise.

Some 76 vessels with 11 million mt of iron ore are expected to arrive at major Chinese ports during May 11-17, up 285,000 mt from 10.72 million mt during May 4-10. This marked a second consecutive week of growth.

Iron ore deliveries arriving at Rizhao and Jingtang ports are expected to increase during this period. However, those arriving at Qingdao are likely to dip because the Shanghai Cooperation Organisation (SCO) Summit may weigh on the iron ore shipments from Qingdao port. Recent, higher freight charges will also affect shipments.

For the same period, the volume of iron ore departing Australian ports is likely to increase 1.1% to 16 million mt; and those leaving Brazilian ports are likely to grow 3.4% to 8.27 million mt.

The most liquid contract on the Dalian Commodity Exchange rose from lows during the day and traded rangebound within a wide range. In the spot market, offers dipped in the morning because futures declined. Offers inched up in the afternoon because prices of futures rebounded, in line with the DCE because it rose from lows and traded rangebound. 

• [Editor:Wang Linyan]