According to the latest information released by China's National Development and Reform Commission (NDRC), the imported iron ore inventory at all Chinese ports has reached 79.22 million mt. In the face of such unprecedented inventory levels, the relevant Chinese authorities have moved to resolve the problem. On May 16 the Industry Department of the NDRC held a coordination meeting aimed at the reduction of iron ore stocks at China's ports. Subsequently, the NDRC together with other relevant departments jointly issued a statement urging all the responsible authorities to implement effective measures to evacuate the huge amounts of iron ore stocks as soon as possible.
Although the figure of 79.22 million mt for the total iron ore inventory at China's ports as of the end of May 15 marked a new historical high, the rising trend has not stopped its upward movement. In particular, the ports of Qingdao, Rizhao, Tianjin and Lianyungang have registered serious iron ore congestion.
Some industry insiders express the view that the Chinese government is trying to reduce iron ore inventory at the ports and to relieve port congestion for the purpose of restraining freight rates and spot market prices. Furthermore, the government's efforts would also appear to be aimed at easing pressure on China in the stalled iron ore talks with Rio Tinto and BHP Billiton.