As we have reported earlier, China iron ore imports down by 2% in Apr’16. The world’s largest consumer of iron ore, China imported 83.9 MnT iron ore in Apr’16.China imports more than two third of seaborne iron ore.
Country majorly imports from Australia, Brazil, and South Africa. Among total imports in Apr’16, Australia contributed 61%, Brazil 19% and South Africa contributed 5% of total imports to China.
In Apr’16, Iron ore 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.
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.
Exports from Australia registered at 51.3 MnT, decreased by 6.3% M-o-M as compared to last month. However, on a Y-o-Y basis, exports from Australia, imports remained almost similar as it was 51.4 MnT in Apr’15.
On similar lines, exports from Brazil, the second largest exporter to China, exported 16.2 MnT in Apr’16. Exporter was down by 8% M-o-M and on Y-o-Y basis exports incremented by 3% as it was 15.7 MnT in Apr’15.
Meanwhile, exports from South Africa had almost remained stable at 3.5 MnT.
Stockpiles at major Chinese ports have climbed above 100 MnT, last seen in Dec’14 at such levels. Inventories rose from 99 MnT in Week 20 to 102 MnT in Week 21.
In Apr’16, the country imported 83.9 MnT iron ore, but rising iron ore port inventories show that iron ore imports aren’t being consumed by mills quickly as they are arriving. However, in May’16, iron ore imports are likely to strengthen as there will be an increase in supply from Australia, due to its financial year ending.
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