China iron ore import hits record high in Jul'20 on strong demand

China - the world's largest iron ore consumer and importer recorded iron ore and pellet imports at 112.65 mn t in Jul'20, up 11% m-o-m, according to the General Administration of Customs. The imports hit record high levels for the month amid easing shipments from the Brazilian miners and rising Chinese demand post end of the rainy season in southern China.

On a yearly basis too, imports picked up 24% compared to 91.02 mn t in Jul'19.

For the period Jan-Jul'20, the imports recorded a rise of 12% to 659.56 mn t as compared to 589.78 mn t in CPLY.

Monthly average iron ore prices up 4% in Jul'20

Monthly average global iron ore fines (Fe 62%) increased significantly by 4% to $107/t, CFR China in Jul'20 against that in last month at $103/t, CFR China.

Outlook: Chinese imports may depict a further uptick on robust steel outlook. Despite the rise in iron ore prices, the imports have witnessed an uptrend amid rising demand favored by increased production at steel mills. The Fe 62% fines price as on 6th Aug'20 stood at $ 121.45/t, CFR China against $116.35/t,CFR China in the beginning of the week.