World’s largest consumer of iron ore, China, imports majority of iron ore from Australia, Brazil and South Africa. The country imported 73.6 MnT iron ore in Feb’16, down by 10.3% M-o-M, as it was 82.1 MnT in Jan’16. Imports was less largely due to week long break for the Chinese New Year during 07 Feb-13 Feb.
However, country imports increased by 8.4% Y-o-Y, as it was 67.9 MnT in the same consecutive month last year. Imports increased this year as top miners boosted low cost iron ore shipments into China inorder to gain more market share.
Imports jumped 6.2% to 155.7 MnT over the first two months prior this year as it was 146.5 MnT in the same period of months in 2015.
Few market participants expect that currently due to sudden hike in global iron ore prices, some Chinese iron ore mines may resumes production, potentially curbing iron ore imports in China by the end of this year.
China iron ore imports is expected to decrease in the coming term as Chinese govt. have announced crude steel production cut of 100-150 MnT pa within next five years as well as ban new steel projects inorder to deal with overcapacity issues.
Chinese steel exports moves down
In Feb’16, Chinese steel exports was registered a fall of 16.4% at 8.1 MnT in Feb’16. Steel exports from China was recorded at 9.7 MnT in Jan’16.
The increased duties imposed on cheaper Chinese steel by India, United States and Indonesia upon imports have led to decrease in country’s steel exports.
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