World’s largest consumer of iron ore, China, imports a majority of iron ore from Australia, Brazil, and South Africa. The country imported 83.9 MnT iron ore in Apr’16, down by 2% M-o-M as it was 85.7 MnT in Mar’16. Imports were less due to higher as well as more volatile prices.
However, country’s imports increased by 4.6% Y-o-Y, as it was 80.2 MnT in the same consecutive month last year. China iron ore imports in the first four months of 2016, recorded at 325.3 MnT, up by 6.1% higher than in the same consecutive months in 2015.
On 21 Apr’16, global iron ore prices hit a 16-month high at USD 69/MT, CFR China. The index fluctuated above the USD 60/MT level for the rest of April. Currently, the prices are at USD 58/MT, CFR China.
Due to higher and volatile prices, Chinese iron ore port stock also increased and touched to a level of 100 MnT in mid-Apr’16. Steel mills were hesitant on booking the cargoes in hopes that prices will drop down further.
Chinese steel exports remain stable
Steel exports in Apr’16 were recorded at 9.08 MnT, which was at 9.8 MnT in the month of march. However, in the first four months of 2016, steel exports was recorded at 36.6 MnT, up by 6.7% in the same period in 2015.
Exports are much lower than a year-on-year growth of 13.3% in the same month last year.
Steel exports in China surged as there was a recovery in domestic steel prices since late February discouraged Chinese steelmakers from selling their products overseas, which resulted in the month-on-month shrinkage of steel exports.
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