China iron ore and pellet imports down 9% M-o-M in May'20

China - the world's largest iron ore consumer and importer recorded iron ore and pellet imports at 87.03 MnT in May' 20, according to General Administration of Customs. The imports witnessed a 9% fall on a monthly basis as compared to 95.71 MnT in Apr '20. For the first five months of CY20 (Jan-May) the total imports recorded a 5% increase to 445.31 MnT as compared to 423.92 MnT in CY19 (Jan-May).

However, on an yearly basis, imports picked up compared to 83.75 MnT in May'19.

The Chinese demand remained almost stable for the month however; the surge in prices curbed some purchase for the month. The spot iron ore fines (Fe 62%) prices picked up sharply in the month of May'20 to over USD 100/MT, CFR China. Also the most-traded September contract of iron ore on the Dalian Commodity Exchange surged 23.3% last month.

As per data compiled by SteelHome consultancy, the iron ore port inventory at major ports reported at 115.65 MnT towards the end of Apr'20 and fell to 109.5 MnT towards the end of the month May'20.

As per data maintained with SteelMint , Indian iron ore export shipments to China depicted a rise amid rising Chinese appetite and material availability constraints from other major miners such as Vale, Brazil.

Monthly average iron ore prices picked up 11% in May'20

Monthly average global iron ore fines (Fe 62%) increased significantly by 11% to USD 94/MT, CFR China in May'20 against that in last month at USD 84/MT, CFR China. Prices increased on Brazilian supply concerns and falling inventory at the Chinese ports.

Outlook: Chinese imports of iron ore and pellets are expected to rise in the following months as the mills are ramping up production post the coronavirus epidemic and catch up with delayed projects.