Seaborne iron ore prices ended last week with another increase as market sentiment continues to improve. Iron ore port stocks have also continued to decrease amid slower deliveries from Australia and Brazil. 

The Kallanish KORE 62% Fe index gained $0.18/tonne to $91.63/dry metric ton cfr Qingdao. The index returned to about $90/t for the first time last week since the end of January.  On the Dalian Commodity Exchange, May iron ore settled at CNY 670/t ($95.57/t), up another CNY 13/t, while on the Singapore Exchange March 62% Fe futures settled up $0.76/t at $89.86/t. In Tangshan, billet prices gained CNY 30/t to CNY 3,040/t. 

Iron ore markets have continued to be bolstered by both restocking and stronger steel market sentiment. As the coronavirus epidemic appears to be slowing, the focus is now turning to ensuring companies return to work. Steel and iron ore traders say they now expect demand to increase strongly by the end of March. 

Stocks of iron ore at Chinese port have meanwhile continued to decline over the last week. Across 35 ports stocks dropped by 1.31mt to 113.24mt by the end of last week, according to a count by SMM. There was some increase at ports around Tangshan due to higher arrivals. The increase in arrivals over the coming weeks is expected to be limited, however, and deliveries from ports are also picking up slightly as restrictions ease.