China, the world’s largest iron ore consumer, recorded imports of the material (including pellets) at 1,038.36 million tonnes (mn t) in Jan-Nov’21, according to the General Administration of Customs. Import volumes were down by 3% y-o-y against 1,073.35 mn t seen in the corresponding period last year (CPLY).
The fall in imports was due to decreased demand amid production curbs and the slowdown in construction activities.
Imports of iron ore in Nov’21 were recorded at 104.96 mn t, an increase of 15% m-o-m as compared to 91.61 mn t in Oct’21. On a yearly basis, the same increased by 7% y-o-y.
According to China Iron and Steel Association (CISA) data, the average daily crude steel output in early November was recorded at 2.343 mn t, inching up by 2% from the previous month. Average daily steel production in early November decreased by 20% y-o-y.
China spot iron ore prices decrease in Nov’21
The average global iron ore fines (Fe 62%) index stood at $95/tonne (t) CFR China in Nov’21 as against $122/t, CFR China in Oct’21, as per SteelMint’s assessment. Buying interest waned in the market due to continued winter steel production controls in China.
Steel mills in northern China, especially in the Hebei province, will continue to conduct winter steel output cuts over Jan-Mar’22. However, other parts of China might be allowed to increase the output to a minimum level of a year ago.
Outlook
Measures to curb air pollution in autumn and winter will be stronger and extend over a longer period. Therefore, a decline in iron ore imports from China is expected in the coming months especially against the backdrop of the ongoing production curbs.
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