In March, China’s iron ore imports experienced a marginal increase of about 0.5% compared to the previous year, as indicated by customs data released on Friday. The General Administration of Customs reported that the world’s largest iron ore consumer imported approximately 100.72 million metric tons of this crucial steelmaking component last month. This figure represents a slight uptick from the 97.51 million tons imported in February and the 100.23 million tons in March 2023.
Analysts attribute the relatively high level of imports to the anticipation of a resurgence in production by steel mills in March, which would subsequently drive up demand for iron ore. However, the actual demand proved to be weaker than expected, leading to an increase in portside stocks and a significant decline in prices.
By the end of March, iron ore inventories at major Chinese ports had risen by 5.3% to reach 142.1 million tons, marking the highest level since late February 2023. Concurrently, ore prices experienced a notable drop of over 13%, according to data from consultancy Steelhome.
Customs data also revealed that China’s iron ore imports in the first quarter of 2024 totaled 310.13 million tons, reflecting a 5.5% increase from the previous year. Analysts highlighted that fewer weather-related disruptions in shipments from major suppliers Australia and Brazil also contributed to the heightened import levels.
Moreover, it is anticipated that imports in April will continue to rise on both a monthly and an annual basis. The sustained influx of seaborne cargoes toward the end of March and the beginning of April suggests that a substantial reduction in import volumes for the current month may be unlikely.
Short Description:
China’s iron ore imports in March saw a slight 0.5% increase from the previous year, reaching approximately 100.72 million metric tons, amid expectations of heightened demand following the Lunar New Year holiday. However, weaker-than-expected demand and high import levels led to increased portside stocks and a significant price drop. The first quarter of 2024 also witnessed a 5.5% year-on-year increase in iron ore imports, attributed to fewer disruptions from major suppliers Australia and Brazil.