China- the world’s largest iron ore consumer and importer, recorded imports of iron ore at 98.57 mn t in Apr’21 against 102.11 mn t in Mar’21, according to the General Administration of Customs.
Imports dropped down by 4% m-o-m due to the hindrances from major miners amid disrupted weather conditions and rising prices. Imports from Australia dropped in Apr’21 due to cyclone towards early Apr’21. Also, iron ore exports from Brazil witnessed a monthly fall of 9% m-o-m from 28.4 mn t in Mar’21to 25.8 mn t in Apr’21.
However, the iron ore demand remained robust as Chinese mills which were not subject to output curbs had ramped up production.
On yearly basis too, Chinese iron ore and pellet imports fell as compared with 95.71 mn t in Apr’20.
Average iron ore prices picked in Apr’21 – The monthly average global iron ore fines (Fe 62%) index increased to $178.5/t, CFR China in Apr’21 against $168/t, CFR China in Mar’21. The prices were hovering at over ten-year high levels towards the end Apr’21 at $193.85/t, CNF China due to rise in infrastructure demand. This level was last witnessed towards Feb’11 at $196/t, CNF China. The global iron ore fines prices have picked up to USD 202.65/t, CNF China as assessed on 6th May’21, highest since CY’09 as per data maintained with SteelMint.
Outlook: Rising emission standards may accelerate high-grade ore requirements in the near term. Market participants highlighted that the spreads between standard grade and high-grade pellets have started widening amid higher demand for low Al pellets in China. Also, discount for low-grade ore is increasing which is widening the gap further.
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