World’s largest iron ore consumer, China imported 87.72 MnT iron ore in Aug’16, almost stable as compared to imports in the month of Jul’16 i.e. 88.4 MnT. China imports majority of iron ore from Australia, Brazil, and South Africa.
However, on Y-o-Y basis, country’s import increased by 18.3% as it was 74.1 MnT in the same consecutive month last year.
In the first eight months of 2016, the country imported 669.7 MnT iron ore, up by 9.2% as it was 613.2 MnT in the same consecutive time frame prior this year.
The price rally in Chinese steel prices is the main reason behind increase in iron ore imports. Imports in the month of August is the second highest import during 2016. In December 2015, China had imported highest volume at 96.3 MnT.
In Aug’16, Chinese iron ore import price averaged at USD 55.76/MT, CFR China up by USD 0.6/MT from USD 55.6/MT in the month of Jul’16. However, on a Y-o-Y basis, the average import price was USD 52.54/MT in first eight months of 2016, down by USD 10.42/MT Y-o-Y.
Chinese iron ore imports are likely to remain at higher levels for the next few months unless global iron ore prices touch to a level of USD 65-70/MT which shall encourage the domestic Chinese iron ore production.
Chinese steel exports down by 12% M-o-M
In Aug’16, Chinese steel exports registered a downfall of 12.5% M-o-M. Steel exports remained at 9.01 MnT in Aug’16 and 10.3 MnT in Jul’16.
However, in first eight months of 2016, country’s steel exports registered at 76.3 MnT, up by 6.8% as it was 71.4 MnT in the same consecutive time frame last year. This occurred despite the anti-dumping duties imposed on the country by the United State and Europe.
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