China’s iron ore imports surged 5.3% in July compared to June, hitting a six-month high of 102.81 million metric tons. This increase was driven by miners striving to meet quarterly shipment targets and improved profit margins for steelmakers, as reported by the General Administration of Customs. The imports also marked a 10% rise from the same month last year.
However, this jump fell short of market expectations, which anticipated imports between 103 million and 110 million tons. Analysts noted that some miners had ramped up shipments in June to fulfill these targets, contributing to the higher import figures for July. Additionally, steelmakers showed increased interest in booking cargoes due to wider margins resulting from lower raw material prices.
Despite the overall increase, iron ore prices fell by 7% in July due to adverse weather conditions impacting construction activities in China, which likely dampened demand from smaller suppliers and contributed to the lower-than-expected import figures.
Year-to-date, China has imported approximately 714 million tons of iron ore, reflecting a 6.7% increase compared to the same period last year. Looking ahead, forecasts for August are mixed; some analysts predict an increase in shipments as steelmakers prepare for improved demand in September, while others anticipate a decline due to slower shipments from certain suppliers.