According to General Administration of Customs, China – the world’s largest iron ore consumer and importer recorded iron ore imports at 83.08 MnT in Feb’19. The imports have dropped 9% M-o-M as against 91.26 MnT in Jan’19. Chinese imports for the month hit 10 months low since Apr’18 imports at 82.92 MnT.
The fall in imports is attributed to week long Lunar New Year holidays, which facilitated sufficient restocking by miners in Jan’19, ahead of holidays.
Amidst Vale dam disaster, iron ore supply in global market has tightened affecting about 70 MnT of iron ore including 11 MnT pellet. The shortfall has resulted sharp hike in global iron ore prices leading preference for lowergrade ore by Chinese mills.
For Jan-Feb’19, the imports reached at 174.4 MnT down 6% as against 184.61 MnT in Jan-Feb’18.
On yearly basis, the imports have dropped marginally as compared to Feb’18 imports at 84.26 MnT.
Average global iron ore fines prices up 16% in Feb’19
Monthly average global iron ore fines (Fe 62%) prices increased 16% to USD 88/MT, CFR China in Feb’19 compared to USD 76/MT, CFR China in Jan’19. The Vale dam disaster led to hike in global iron ore prices.
Leave a Reply