According to data from Shanghai SteelHome E-Commerce, inventories at Chinese ports climbed to the highest level in more than three years after iron ore from Brazil hit a record high last week. This move came together with the leap towards the end of the year in China's iron exports, which climbed to a 13-month high in November. Dry cargo monitoring firm DBX Commodities expects both Australia and Brazil to increase shipments in December.
Apart from these two traditional suppliers, the amount of iron coming to China from other countries has increased 11 percent so far this quarter, according to research firm Mysteel. The company noted in its memo that the gap between supply and demand is increasing.
However, iron ore futures are heading for the longest weekly streak since May in Singapore after Chinese authorities took steps to support the real estate sector and economy this week. Prices have risen nearly 50 percent since November 10, driven by expectations that demand will improve.
Iron ore fell 1.4 percent in Singapore to $124 a tonne, up 3.4 percent this week. While prices have increased in China's Dalian market, rebar and hot rolled coil prices have also moved up in the Shanghai market.
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