SMM data showed that iron ore stocks across 35 Chinese ports totalled 108.43 million mt as of April 10, up 1.57 million mt from a week ago but 23.5 million mt lower than a year ago.

Daily average deliveries from the 35 ports decreased 9,000 mt from a week ago to 2.73 million mt this week. Arrivals across major ports and shipments from Australia and Brazil have been increasing since the end of March, while deliveries from ports have changed little, resulting in higher stocks.

Port stocks are likely to extend increases in the short term as more cargoes may arrive along with greater shipments from Australia and Brazil, and as steel mills will continue to restock as needed.

In addition, maintenance at some steel mills has reduced demand for iron ore.