Chinese Iron Ore Inventories Surpass 100 Million MT

Bloomberg reported that iron ore inventories at Chinese ports rose to 100.25 million metric tons (MT) last week. That’s the first time since July 2012 that they have exceeded 100 million MT.

The increase came as traders imported more iron ore to use as collateral for credit and amidst weak domestic demand.

As quoted in the market news:

Spot prices in China dropped 8.2 percent this year even as imports surged to a record last month. The increase in inventory levels creates near-term downside risk to iron ore prices, Goldman Sachs Group Inc. said in a Feb. 11 report. Money-market rates have also increased. The seven-day repurchase rate, a gauge of interbank funding availability in China, in December climbed to the highest since a record liquidity squeeze in June.

Click here to read the full Bloomberg report.