China, world’s largest iron ore consumer and importer of iron ore, recorded imports of iron ore (including pellets) at 86.06 mnt in April, 2022, down 13% y-o-y as against 98.57 mnt in the corresponding month last year (CMLY), according to the General Administration of Customs.
On a monthly basis, the imports fell by 1% as compared to 87.28 mnt a month ago. The overall purchases have declined as a result of weak demand while the pandemic situation still disrupted shipments.
China’s National Development and Reform Commission (NDRC), on 19 April 2022, announced that the country will continue with the crude steel reduction policy. The efforts of 2022 will only help to sustain the 2021 goals of 30 mnt of reduction. The declining trend in raw material prices is expected to be long term, which is expected to exert pressure on finished steel prices. Production curbs, along with Covid surge and short-term demand drop, have a negative impact on raw material prices too.
In addition, China’s cumulative import volume was recorded at 354.38 mnt during the Jan-April 2022 period, down 7%, y-o-y.
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