China’s iron ore imports in May stayed above 100 million metric tons for the third straight month, reaching 102.03 million tons. This was in line with analysts’ expectations of between 100 and 105 million tons, and compared to 101.82 million tons imported in April and 96.17 million tons in May 2023.
The strong iron ore imports were largely driven by traders and steelmakers booking seaborne cargoes arriving in May, as the lower-than-expected hot metal output in March cemented beliefs of an increase in demand in the coming months. Beijing’s stimulus measures to revive the struggling property sector also boosted sentiment and brightened demand prospects.
“A pick-up in demand in spring had kicked off a bit later this year, starting from April versus March in previous years, therefore it’s not a surprise to see imports in the past two months hovered high,” said Pei Hao, an analyst at international brokerage Freight Investor Services (FIS).
The persistent higher imports contributed to a steep growth in portside inventories, which climbed to 145.5 million tons by the end of May, the highest since April 2022, according to data from consultancy Steelhome.
For the first five months of 2024, China’s iron ore imports totaled 513.75 million tons, a year-on-year increase of 7%. Analysts expect iron ore imports in June to likely remain high as miners may need to ramp up shipments in May and June to achieve quarterly targets.
In addition, China’s steel exports in May rose by 15.2% from the year earlier to 9.63 million tons, staying above 9 million tons for a third consecutive month. Steel imports, on the other hand, ticked up by 1% on the year to 637,000 tons in May.