Iron ore prices climbed back up to near decade highs on Thursday after customs data showed record-breaking imports by China, which forges more steel than the rest of the world combined.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China (CFR Qingdao) were changing hands for $172.36 a tonne, up 1.3% on the day.
The steelmaking raw material has already enjoyed 7%-plus gains in 2021 after an 80% rise last year and is now trading at levels last seen in September 2011. The benchmark hit an all-time high of $191.70 in February that year.
The high-grade Brazilian index (65% Fe fines) is back near record high at $194.30 a tonne after rising 77% over the past year.
Despite a 45% year-on-year decline in shipments in December to 96.75 million tonnes, for the full year China imported 1.17 billion tonnes of iron ore, customs data showed on Thursday. That handily beat the previous record of 1.075 billion tonnes set in 2017.
“The jump came as overseas consumption (of iron ore) plunged, while China had strong demand,” Wang Yingwu, chief analyst with Huatai Futures in Beijing told Reuters.
