Pig iron imports by China were recorded at 1.1 million tonnes (mn t) in the first four months of CY’21 (Jan-Apr’21), up 5% year-on-year compared to 1.05 mn t in Jan-Apr’20, according to data maintained with SteelMint.
The fast recovery in China’s economy, boosted by the government’s stimulus package, resulted in higher imports of pig iron.
The highest volume was recorded in the month of Jan’21 at 495,379 tonnes (t), which accounted for more than 80% of the total China’s pig iron imports during Jan-Apr’21. In Apr’21, the same was recorded at 163,224 t, down 9.3% over Mar’21. On a yearly basis, imports of the material registered a 45% drop compared to 295,624 t in Apr’20.
Brazil top exporter
Brazil retained its first position as the top exporter to China in Jan-Apr’21. The latter imported 436,313 t of pig iron from Brazil, a marginal decrease of 1.7% y-o-y over the corresponding period last year (CPLY).
Russia moved a step further and became the second largest exporter of pig iron to China in Jan-Apr’21 followed by India. Imports from Russia stood at 329,706 t, a humongous 101% y-o-y increase compared to 163,631 t in Jan-Apr’20.
Imports from India rise significantly
China imported 97,556 t of pig iron from India during Jan-Apr’21, a sizeable increase of 84% y-o-y compared to 53,000 t in the same period last year. Import volumes in Jan’21 remained nil while they kept on increasing in the later months.
As India was hit by the second wave of the pandemic in Mar-Apr’21, many states had imposed lockdown restrictions, leaving several pig iron plants shut for the period. Indian pig iron producers turned to exports in the absence of domestic demand.
China’s combined pig iron imports from India during Mar-Apr’21 amounted to 75,556 t.
Outlook
As China gets cracking on carbon emissions and targets crude steel production cuts, while safeguarding domestic supply through imports of metallic products, demand for pig iron from the world’s top steel producer is more likely to increase in the coming months.
Also, with China slashing the pig iron import tax to zero from 1 May’21, Indian pig iron exports to China are expected to remain elevated in the near-future, SteelMint notes.
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