China, the world’s largest iron ore consumer, recorded imports of iron ore (including pellets) at 96.21 million tonnes (mnt) in August 2022. On a monthly basis, imports of the raw material moved up by 5% m-o-m compared to 91.24 mnt in July.
Higher iron ore imports were recorded amid improved utilisation rates of steel mills. The average daily crude steel output of CISA-affiliated mills stood at 2.03 mnt in late-August. The average daily finished steel output was at 2.02 mnt, up 4.31% m-o-m and down 3.19% y-o-y.
However, imports inched down by 1% y-o-y as against 97.49 mnt seen in the corresponding period last year, according to the General Administration of Customs. China’s cumulative imports of iron ore were recorded at 722.92 mnt in January-August 2022, down 3% y-o-y.
Price trend: Iron ore prices fell sharply in early August from $118/t CFR China to $104 due to falling iron ore futures prices at the Dalian Commodity Exchange (DCE) and rising supplies. Later, iron ore prices rebounded until mid August, owing to increased capacity utilisation rates of Chinese blast furnaces. However, due to relatively high inventory levels, iron ore prices fell again to $98/t later in the month.
Iron ore inventory continues to rise: Iron ore inventory at Chinese ports remained high in the beginning of September, according to SteelHome data. Inventory increased to a nearly four-month high of 143 mnt on 1 September from 141.75 mnt on 12 May.
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