Year 2015, turned out to be remarkable year for China as well as Chinese steel industry as the year set many records in terms of iron ore imports and steel exports.
China, the world’s largest consumer of iron ore have recorded highest iron ore imports in 2015. Cumulatively, the country imported 953 MnT iron ore in 2015, highest since 2012. Imports surged 2.2% Y-o-Y in 2015 as compared to 933 MnT in 2014.
Meanwhile in Dec’15, total, 96.2 MnT iron ore has been imported by China, highest in CY 15. However, imports are high by 17% M-o-M as it was 82.1 MnT in Nov’15. Couple of reasons behind higher import are continuous declining iron ore prices, curtailment in steel output and slow economic growth in China.
Increase in imports clearly indicates that overseas miners have got greater share of the market in China. Major Australian and Brazilian miners cum exporters like Rio Tinto and BHP Billiton, have increased the supply of iron ore into China despite of shrinking steel demand and output as well as economic slowdown.
On the other hand, spot iron ore prices have again tumbled to a level of USD 40/MT, a way long to find support as currently, couple of major factors forcing them to drop down further.
Steel export figures records all time high
China steel exports are recorded at 10.66 MnT in Dec’15. In 2015, the country exported 112.4 MnT of steel exports, at all time high.
Influx of low cost iron ore by major iron ore miners have allowed Chinese mills to keep producing more steel. To compensate with shrinking demand at China, Chinese steel makers are exporting steel products at their highest levels.
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