China, the world’s largest importer of iron ore, has imported 79.5 MnT iron ore in Oct’17. The country’s iron ore imports have come down sharply by 23% M-o-M against record high imports of 102.83 MnT in Sept’17.
As per reports, country’s iron ore imports in October is lowest monthly iron ore imports since Feb’16.
The China iron ore imports are down 2% Y-o-Y against 81.8 MnT in Oct’16. For the first ten months of 2017 imports were up 6% to 906 MnT against the same period last year.
Amid week long National Day holidays in China observed in beginning of October, trade activities remained on the lower side resulting in reduced iron ore imports. Also arriving winter season will lead to lesser construction activities and hence lesser iron ore imports.
China’s falling iron ore demand amid announced steel production cuts – With a purpose to reduce air pollution, Chinese govt has announced restrictions on steel production during Oct’17- Mar’18. This will affect steel makers in Hebei, Shanxi, Tianjin, Shandong and Henan areas, at above mentioned period they will cut back on iron ore demand by 70.64 MnT. Among those areas Hebei will be affected most, Hebei will cut back on iron ore consumption by 33.64 MnT (i.e 1.44, 4.55, 8.21,8.11, 7.16, 4.14 MnT from Oct’17 to March’18).
Monthly average spot iron ore prices dropped by USD 10/MT in Oct’17 – Monthly average spot iron ore fines (Fe 62%) prices were analyzed at USD 61/MT, CFR China in Oct’17 against USD 71/MT, CFR China in Sept’17.
China accounts for nearly 70% of world’s seaborne iron ore trade and imports iron ore majorly from Australia, Brazil, South Africa, India, Ukraine and Iran.
Source Steel Mint powered by Keyvan Jafari Tehrani (JTC)
