China, world’s largest consumer of iron ore, has imported 82.1 MnT iron ore in Jan’16, majority from Australia, Brazil, South Africa etc. Last month, iron ore imports dropped as Chinese steelmaker reined in output before national holidays.
Country’s imports dropped by 14% M-o-M in Jan’16. In Dec’15, imports were recorded monthly high at 96.2 MnT. However, on Y-o-Y basis, imports are up by 4.4% as it was 78.6 MnT in Jan’15. Meanwhile, in 2015, the country imported 953 MnT iron ore.
Imports rose on year-on-year basis as Chinese steel mills replenished inventories with cheap seaborne supplies. According to China Iron and Steel Association (CISA), iron ore demand in China remained strong as mills went for restocking before Chinese Lunar New Year, but were not enough to stimulate iron ore prices.
Although China imported 953 MnT iron ore in 2015, still Chinese steel giant sector is struggling with overcapacity, declining domestic demand and collapse in iron ore prices.
Steel exports down by 8.6% M-o-M
China, being the largest consumer of steel raw material has to be the world’s largest steel exporter. However, in 2015, the country exported 112.4 MnT steel exports, recorded all time high.
In Jan’16, the country exported 9.7 MnT steel exports, down by 8.4 MnT M-0-M in Dec’15 as it was 10.6 MnT. However, if we talk about on Y-o-Y basis, exports are down by 5.3% in Jan’16.
Steel exports were less as there was rise in foreign anti-dumping duties imposed on Chinese producers by different countries due to sustained increase in cheaper crude steel production and exports.
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