Tianjin Port resumes iron ore supplies

According to industry sources, shipments of iron ore to local steel mills from the port of Tianjin have already been resumed. One of the main roads leading to the port has been opened. It is indicated that the road leading to Nanjiang District has been opened, while roads in Beijiang Province remain closed.

Explosions at a container warehouse with dangerous chemicals reportedly resulted in the death of 100 people and several hundred injured, some of whom are in critical condition. After the explosions, transport links to the port in the Nanjing and BeiJiang regions were cut off.

Meanwhile, the China Metallurgical Association (CISA) predicts that iron ore prices in the country will slightly improve during September-October 2015, mainly due to increased demand, low stocks in ports and the stabilization of the yuan. The latest analysis of the iron ore market released by the Association notes that demand for iron ore is likely to rise over the next two months, which are traditionally the peak sales season for Chinese steel companies.

Non-core miners' supplies may have a further decline over the coming months. Increased supply from the four world leaders Rio Tinto, BHP Billiton, Vale and Fortescue Mining will not be sufficient to cover the supply gap. This could deplete the level of iron ore reserves in Chinese ports.

According to Chinese customs, the average import price of raw materials fell slightly, by 1.8 percent, during July this year. Iron ore imports from Australia declined 4.7 percent to 67.7 million tonnes in July 2015. On the other hand, imports from Brazil have increased significantly. The growth was 16.8 percent to 24 million tons during the month.