China's ports could reach maximum capacity by early June as stockpiles iron ore build pressure on facilities to create more storage space – resulting in buildings being demolished to create larger ones, trading sources have told Reuters.
The current volume of iron ore in China equates to about 95 million tonnes of steel — enough to build 12,960 replicas of the Eiffel Tower in Paris.
This is a result of the marketplace jumping 15.3% in January-February as a price rally last year extended into 2017.
However, imported ore has piled up at the ports and prices are falling as stockpiles reach their highest in more than a decade.
SteelHome consultancy have reported that the inventory of imported iron ore at 46 Chinese ports reached 132.45 million tonnes on March 24 — the highest since it began tracking the data in 2004.
A Reuters source at a foreign trading firm has reported that some ports are trying to manage storage space by rejecting vessels carrying lower grade iron ore that could take months to clear.
The source said: "We have sent our people around the major ports in China and some are trying to find extra space.
“They're demolishing some abandoned buildings to create more space.”