China, the world’s largest iron ore consumer, recorded ore imports (including pellets) at 97.49 million tonnes (mn t) in Aug’21 against 88.51 mn t in Jul, according to data furnished by the General Administration of Customs.
Imports picked up 10%, m-o-m, for the first time in five months, as per data maintained with SteelMint. On a yearly basis, imports witnessed a drop of 3% vis-a-vis 100.36mn t in Aug’20.
During the Jan-Aug’21 period, China imported 746.45mn t of iron ore, lower by 2% compared to the same period last year.
Australia, Brazil top exporters
The rise in iron ore imports can be attributed to increased shipments from the top exporters,Australia and Brazil, amid China’s stringent steel output controls.
Australia’s iron ore exports to China inched up by 2% to 58.5 mn t in Aug as against 57.3 mn t in Jul. The second-largest exporter to China, Brazil, recorded a 10% increase in shipments to 23.94 mnton month in Aug.Exports picked up on higher shipments and elevated demand for high-grade ore from Chinese mills due to tightening environmental curbs.
Monthly average iron ore prices stable in Aug’21: The average global iron ore fines (Fe 62%) index was recorded at $161.3/tonne (t) CNF China, down 25% on month.The spot price of iron ore Fe 62% fines dropped sharply by $13/t on 7Sept’21 to $132/t CFR China, tracking the decline in iron ore futures.
Outlook
Steel output curbs in China intended to lower carbon emissions and reduce pollutants have dented iron ore consumption and increased inventories at ports. Hence, trade analysts expect iron ore demand to soften in the near future.
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