China’s iron ore imports in April ticked up 1.1% from the previous month, reaching 101.82 million metric tons, according to data from the General Administration of Customs. This was higher than the 100.72 million tons imported in March and the 90.44 million tons imported in April 2023.
The increase in imports was mainly attributed to lower iron ore prices in March, which encouraged some buyers to place orders for more volumes, betting that demand and prices would pick up later. Seaborne iron ore prices averaged $109.7 a ton in March, down 12% from February and 14.6% from March 2023.
Pei Hao, a Shanghai-based analyst at international brokerage Freight Investor Services, said the obvious annual increase was mainly due to a low base effect, as the volume last April was relatively low. However, he noted that there was no significant change in the daily consumption of iron ore among domestic steelmakers, and imports in April remained high.
Analysts expect the second quarter to also see comparatively higher iron ore imports versus year-ago levels, following an annual increase in the first quarter. They attributed this to higher shipments in late March to catch up with quarterly targets, as well as a slower-than-expected recovery in hot metal output in March, which put downward pressure on ore prices.
Looking ahead, both ore demand and prices are expected to be better in the second half of the year, benefiting from a quicker issuance of special bonds in the second quarter, stimulus including equipment upgrades, and robust steel exports. China’s steel exports in April jumped by 16.3% from the year earlier to 9.22 million tons, the highest for the period since 2016.
China’s iron ore imports in the first four months of 2024 totaled 411.82 million tons, up 7.2% from the same period in 2023.