China’s the world’s largest importer of iron ore recorded the highest import at 1.024 BnT in 2016 according to recent data released by Chinese customs. Iron ore imports in 2016 geared up due to strong steel production, lower mine output and increased low cost imports from Australia and Brazil.
Country’s iron ore yearly imports grew up by 7% Y-o-Y as it was 953.1 MnT in 2015.
In Dec’16, iron ore imports were registered at 88.76 MnT, down by 4% M-o-M. On similar lines, the country imports down by 8% Y-o-Y as it was 96.2 MnT in Dec’15.
Global iron ore prices surged by USD 37/MT in 2016: It is to be noted that global iron ore prices for Fe 62% Australian fines also moved up sharply by USD 37/MT in 2016. Prices moved up on strong Chinese demand in China’s domestic steel market as well as sudden hike in coking coal prices.
Towards the starting of 2016, iron ore prices remained at USD 43-44/MT levels, however, it touched to the level of USD 80/MT by the end of the year.
Country-wise China iron ore imports in 2016
China majorly imports iron ore from Australia, Brazil, and South Africa. The country imports more than two-third of seaborne iron ore. India-turned out to be the 5th largest iron ore exporter to China in 2016.
Australia, Brazil and South Africa remained the largest supplier of iron ore to China. Australia contributes around 60% exports to China, Brazil contributes 20-30% and South Africa contributes around 5% exports to China.
With low cost exports from Australia and Brazil to China, China’s domestic crude iron ore production remained distressed as the Chinese steel makers’ preferred imported lump over domestic due to lower cost.
Provisional Data
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