According to General Administration of Customs, China – the world’s largest iron ore consumer and importer, recorded 21% rise in iron ore imports to 91.02 MnT in July’19 against June’19 imports at 75.18 MnT. The imports rebounded for the month against hitting lowest level in June’19 since Feb’16.
The imports picked up amidst easing supply from major miners. Vale- announced resumption at its Brucutu mines and also resumed partial operation at its Vargem Grande Complex in July’19.
However, on yearly basis import volumes witnessed only slight increase compared to 89.96 MnT in July’18.
The total imports for the CY19 (Jan-July’19) witnessed 5% drop to 591.48 MnT, as compared to 620.63 MnT in CY18 (Jan-July’18).
Average global iron ore fines prices picked up in July’19
Monthly average global iron ore fines (Fe 62%) index price witnessed hike to USD 120/MT,CFR China in July’19 as against USD 108/MT, CFR China in June’19. The prices for the month were hovering five years high levels at USD 126/MT, CFR China towards early July.
Outlook: As per SteelMint analysis, Sluggish buying interest and falling Chinese currency to sensitive level amid US tariff may keep prices under pressure.
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