China, the world’s largest iron ore consumer and importer, recorded imports of iron ore (including pellets) at 92.52 million tonnes (mnt) in May 2022 as against 86.06 mnt seen in April, according to the General Administration of Customs. Imports increased by 8% m-o-m due to strong demand from steel mills.
On a yearly basis, iron ore imports inched up by 3% y-o-y in May as compared to 89.79 mnt in CPLY.
China’s cumulative import volume was recorded at 446.85 mnt in January-May 2022 period, down 5%, y-o-y.
Price trend
According to SteelMint’s assessment, global iron ore (Fe 62% fines) prices rose to $137/t CFR China on 31 May 2022 from $128/t CFR China recorded on 11 May 2022.
According to sources, global iron ore export shipments were lower than market estimates due to the recent drop in supply in the international market. The international price rose sharply on the back of strong demand.
On the other hand, supply and demand in the domestic market are already tight which supported the price hike.
Outlook
The iron ore demand outlook in the second half of the year should still be optimistic. Backed by strong policy side stimulus, the elasticity of iron ore demand will increase.
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