China, the world’s largest iron ore consumer, recorded imports of the material at 89.42 million tonnes (mn t) in Jun’21 against 89.79 mn t in May’21, according to the General Administration of Customs data.
The imports slipped by 0.4% to a 13-month low, m-o-m due to decline in shipments in Jun’21. Market analysts expect that demand could continue to ease in the second half too.
In the first half of CY’21, the country’s total iron ore imports were recorded at 560.7 mn t, up by 2.6% y-o-y compared to the corresponding period last year (CPLY). The volumes of imported iron ore rose by 71.7% on a yearly basis in Jan-Jun’21.
Robust steel production and higher profits at mills supported elevated demand in the first half.
Average iron ore prices rise in Jun’21: The average global iron ore fines (Fe 62%) index rose to $214/t, CNF China, in Jun’21 against $208/t, CNF China a month ago. The hike in prices was largely due to an increase in Chinese iron ore and steel futures.
Outlook
China aims to control its annual crude steel output to meet its goal of carbon emissions cuts. Hence, trade analysts expect iron ore consumption to soften in the near future.
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