As we have reported earlier, China iron ore imports increases by 16% in Mar’16. The world’s largest consumer of iron ore, China imported 85.7 MnT iron ore in Mar’16.China imports more than two third of seaborne iron ore.
Country majorly imports from Australia, Brazil and South Africa. Among total imports in Mar’16, Australia contributed 64%, Brazil 20% and South Africa contributed 5% of total imports to China.
Chinese iron ore imports were up by 6.4% Y-o-Y in Mar’16, upon seasonal pick up in iron ore demand as construction activity increases. In Mar’15, imports were around 80.5 MnT.
Exports from Australia registered at 54.1 MnT, increased by 21% M-o-M as compared to last month. However, on Y-o-Y basis, exports from Australia increased by 6.4% as it was 51.5 MnT in Mar’15.
On similar lines, exports from Brazil, the second largest exporter to China, exported 17.6 MnT in Mar’16. Exporter were up by 4.1% M-o-M and on Y-o-Y basis, exports incremented by 21% as it was 14.5 MnT in Mar’15.
Meanwhile, exports from South Africa has sharply moved up by 49% M-0-M and registered at 4.41 MnT. On Y–o-Y basis, exports from South Africa significantly dropped down by 6%.
Meanwhile, global iron ore prices are gaining momentum. Prices are soaring and witnessed at USD 69/MT, CFR China on 21 Apr’16. Prices hit 16-months high. Seasonal demand uptick has been a major contributor to the current elevated steel and iron ore prices. However, the rally to be sustainable must be supported by an improvement in demand fundamentals.
China’s iron ore port inventory at major ports is a key indicator that reflects supply and demand balance. Iron ore inventory as on April 18, 2016, is recorded at 98.6 MnT, which lie among highest one. While iron ore prices have moved up recently due to steel mills in China restocking, China’s port inventory suggests that the current rally isn’t supported by demand uptick.
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