For the 1st quarter of this year, China’s iron ore imports hit a Q1 record. Altogether, prices climbed nearly 10% from January to March, reaching 29.3 million tons (MT). Indeed, March alone saw imports grow 1.8% to 100.23 MT. Helping these numbers were expectations of stronger steel demand as the Chinese economy continues to emerge our of the country’s zero-COVID-19 policies. Ultimately, a recovery in China’s steel sector seems to be in motion, and iron ore production continues to react accordingly.
Newly released data shows that China’s daily hot metal output grew to 2.3 MT during the week of March 31. This represents an increase of nearly 4% from late February. But don’t applaud yet. Sector experts have introduced a note of caution. Specifically, they indicate there were tell-tale signs of demand waning in the coming months, beginning in April.
For instance, news agency Reuters released a report stating that prices across the steel spectrum have been retreating in recent sessions. Moreover, China’s imports of iron ore appeared to be moderating. The spot price for benchmark 62% iron ore for delivery to north China, as assessed by commodity price reporting agency Argus, ended at U.S. $118.80 a ton this Monday. According to the Reuters report, this is the lowest number since January 9, 2023.
