China: Iron ore and pellet imports fall 11% m-o-m in Aug

China - the world's largest iron ore consumer and importer recorded iron ore and pellet imports at 100.36 mn t in Aug'20, down 11% m-o-m t as against 112.65 mn t in Jul'20, according to the General Administration of Customs. The imports dropped in Aug post making record high imports in July'20 due to fewer shipments from big miners, port congestion and coronavirus-related restrictions leading to delayed custom clearances.

On a yearly basis, imports picked up 6% compared to 94.85 mn t in Aug'19.

For the period Jan-Aug'20, the imports recorded a rise of 11% to 759.91 mn t as compared to 684.52 mn t in CPLY.

Monthly average iron ore prices up 14% in Aug'20

Monthly average global iron ore fines (Fe 62%) increased significantly by 14% to $122/t, CFR China in Aug'20 against that in last month at $107/t, CFR China.

Outlook: Chinese demand for iron ore is expected to rise amid rising investment in infrastructure projects post the end of the rainy season. However, the global rise in iron ore prices reaching over 6.5 years high as on 4th Sep at $130.8/t, CFR China due to firm end-user demand for mainstream Australian fines keeps the Chinese imports expectation subdued.