China- the world’s largest iron ore consumer and importer recorded imports of iron ore at 98.15 mn t in Nov’20, according to the General Administration of Customs. The imports fell 8% on m-o-m basis compared to 106.74 m t in Oct’20.
The imports dropped on falling shipments from Australia and Brazil amid maintenance of berths at Dampier port and Hedland port. Brazil -world’s second-largest iron ore exporter recorded drop in its iron ore export volumes in Nov’20. Export volumes stood at 29.2 mn t in Nov’20, down 6% as against 31.1 mn t in Oct’20, according to trade statistics released by Brazil customs.
On a yearly basis, imports picked up by 8% against 90.65 mn t in Nov’19.
The country’s total imports for Jan-Nov’20 recorded at 1.07 Bnt, exceeding CY19 total imports of 1.06 Bnt. For Jan-Nov’20 imports increased 10% compared to 962 mn t in CPLY.
Monthly average iron ore prices picked in Nov’20
Monthly average global iron ore fines (Fe 62%) increased to $124/t, CFR China in Nov’20 against that in last month at $120/t, CFR China.
Prices showed an increase due to fall in Chinese port stocks. Iron ore stocks at Chinese major ports stood at 130.8 mn t towards beginning of Nov’20 which dropped to 130.3 mn t towards end Nov’20.
Last week prices soared to 7-year high levels on strong speculative interest for Jan cargoes amid near-term supply concerns.
Outlook:
The imports may drop down further. Imports from Brazil are expected to stay on lower side due to falling shipments from major miner on event of Vale declaring a drop in its production guidance. Vale in its recent press release on 2nd Dec’20 notified that the company has reduced its iron ore production guidance to 300- 305 mn t as against previously set guidance at 310-330 mn t.
Anglo American has recently notified a reduction in its iron ore production guidance for 2020. The miner has reduced the guidance to 37 mn t for Kumba iron ore against previously set guidance at 37-39 mn t. These factors may keep iron ore supplies tight in the near term.
Leave a Reply