World’s largest iron ore consumer, China imported the highest volume of iron ore in Jul’16 after Dec’15. China imports the majority of iron ore from Australia, Brazil and South Africa.
In Jul’16, the country imports were registered at 88.4 MnT, up by 8.3% M-o-M as it was 81.6 MnT in Jun’16.
On similar lines, country’s imports on Y-o-Y basis increased by 2.6% as it was 86.1 MnT in the same consecutive month last year.
However, in the first seven months of 2016, the country imported 582 MnT iron ore, up by 8% as it was 539.1 MnT in the same consecutive time frame prior this year. Chinese iron ore import price averaged at USD 51.8/MT, CFR China down by USD 11.69/MT Y-o-Y.
Prime reason behind an increase in iron ore imports was surge in low-cost supply of material within China by world’s major iron ore suppliers namely Australia and Brazil. In order to take advantage of price recovery, iron ore suppliers wanted to increase their shipments to China.
Iron ore imports are likely to stay around at such level for the next few months unless global iron ore prices touch to a level of USD 65-70/MT which shall encourage Chinese domestic iron ore output.
Chinese steel exports drop by 5.9% M-o-M
In Jul’16, Chinese steel exports registered at 10.9 MnT, drop down by 5.9% M-o-M as it was 11 MnT in Jun’16. But steel exports remain high in Jul’16, as steel mills keep exporting products, despite complaints of dumping from other regions including the United States and Europe.
However, in first seven months of 2016, country’s steel exports registered at 67.3 MnT, up by 8.7% as it was 61.9 MnT in the same consecutive time frame last year.
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