China’s iron ore imports up on strong demand

The world’s top steelmaking nation brought in 181.5 million tonnes of iron ore in January and February, according to data released by the General Administration of Customs today. That’s up from 176.6 million tonnes for the same period a year earlier.

The rise was within analysts’ expectations, as shipments from China’s top two suppliers grew steadily.

Those arrivals from Australia and Brazil rose 11 per cent to 164mt, Refinitiv vessel-tracking data showed.

The China Iron and Steel Association forecasts steel demand will grow slightly this year, buoying sentiment in the ferrous sector.

But the industry ministry had repeatedly urged companies to cut China’s crude steel output this year in line with President Xi Jinping’s goal of carbon neutrality by 2060.

“It remains unclear how the production reduction is going to be implemented,” Zhuo Guiqiu, an analyst with Jinrui Capital, said before data was released.

“If crude steel output is really curbed ... and taking steel scrap into account, iron ore demand for the whole year could drop."

China approved imports of high-grade steel scrap this year under new national standards, while major domestic steel producers are developing their metals scrap-recycling businesses.

In the first two months, China exported 10.14mt of steel products, up 30 per cent from in 2020, according to customs.