China’s Iron Ore Imports Surge 16% M-o-M

In Sept’15, China iron ore import is recorded at around 86.1 MnT against 74.12 MnT in Aug’15. Imports are up by 16% M-o-M.Iron ore imports to China increased by 2% Y-o-Y in Sept’15.

While considering the 1^st nine months of two consecutive years (2014 & 2015), iron ore import volumes remained flat at 699 MnT.

Increase in iron ore imports clearly indicates that steel production had not declined despite mills are running at losses over falling prices. Also, demand of iron ore somewhat climb up as major iron ore miners continues to ramp up production.

Meanwhile, major iron ore producing countries like Australia and Brazil are on the same track to ramp up production. Roy Hill, a major project by Australian miner, as we have reported earlier, is expected to ship its first export consignment at the end of this month but now, due to some technical delay the first iron ore shipment will move by the month of Nov’15.

Increase in Chinese Steel Exports

In Sept’15, Chinese steel exports hit a record high at 11.25 MnT. Amid weaker domestic demand, steel exports from China geared up. Steel export from China were at 71.8 MnT in the period between Jan-Aug’15. 

Steel exports are gaining momentum as mills in China are still preferring to make more steel prior to economy needs due to ample availability of cheap ore.