China: Iron ore imports fall 4% m-o-m in July on weaker steel margins

• Equipment maintenance reduces iron ore consumption
• January-July imports remain 5.9% higher y-o-y

China’s iron ore imports declined to 108.09 million tonnes (mnt) in July 2026, down nearly 4% m-o-m from 112.69 mnt in June, according to data released by the General Administration of Customs of China (GACC) on 7 August. The decline was primarily driven by weaker steel mill profitability, planned equipment maintenance and cautious raw material procurement. Despite the monthly decline, cumulative imports during January-July 2026 reached 736.84 mnt, up 5.9% y-o-y, indicating that import demand remained stronger than last year.

Thinning steel margins reduce raw material buying

Chinese steelmakers curtailed iron ore procurement in July as finished steel prices weakened faster than raw material costs, compressing blast furnace margins. Mills therefore limited spot purchases and focused on need-based replenishment rather than building inventories.

Equipment maintenance lowers ore consumption

Several steel mills scheduled routine blast furnace and sintering plant maintenance during July, temporarily reducing hot metal output. Lower operating rates translated into reduced seaborne iron ore requirements.

Seasonal slowdown weakens steel demand

High temperatures and rainfall across several regions disrupted construction activity, leading to softer steel consumption. The weaker downstream demand prompted mills to adopt a cautious raw material procurement strategy.

Global iron ore prices edge lower

Reflecting weaker Chinese buying interest, seaborne iron ore prices eased during July. Iron ore fines (Fe 61%, Australia origin) declined by $3/t m-o-m to $98/dmt CFR China. The price correction was largely driven by weaker procurement activity as mills sought to protect margins amid higher coke costs and subdued seasonal steel demand.

Port inventories decline m-o-m

China’s iron ore inventories across 34 major ports fell to 157 mnt at end July, compared with 159 mnt at end June, as lower monthly imports marginally reduced port stockpiles. Despite the decline, inventories remained sufficient to meet domestic demand.

Outlook

China’s iron ore imports are expected to remain moderate in August as ample supply and comfortable port inventories reduce the need for aggressive cargo bookings. Mills are likely to continue with need-based procurement until steel demand improves.