China 2021 iron ore imports retreat from record on steel curbs

China's iron ore imports dropped in 2021, down 4.3% from the previous year's record annual high, as steel production curbs imposed to combat pollution dented demand and pulled prices of the key steelmaking material off historical highs.

The world's top iron ore consumer brought in 1.12 billion tonnes of the commodity last year, compared with 1.17 billion tonnes imported in 2020, data from the General Administration showed on Friday.

For December, China imported 86.07 million tonnes of the raw material, down 18% from November, the data showed.

China consumed iron ore at a rapid rate in the first five months of 2021, backed by robust steel production as mills enjoyed decent profits underpinned by a recovery in demand after the first waves of the coronavirus pandemic.

However, imports then started to contract on an annual basis as authorities urged steel mills to cut production to meet an annual target of keeping crude steel output flat. Slowing construction activity also muted downstream demand for the industrial metal. read more

During June-December 2021, China's iron ore imports slid nearly 10% from the same period a year earlier. Benchmark iron ore futures prices on the Dalian Commodity Exchange dived 45% by end-December from the peak of 1,239 yuan per tonne logged in May.