China: Iron ore imports decrease by 10% m-o-m in Apr'23 on falling margins, looming steel output curbs

China - world's largest iron ore consumer - recorded imports of the steelmaking raw material at 90.44 million tonnes (mnt) in April 2023, according to data published by the General Administration of Customs. Import volumes decreased by 10% as compared to 100.23 mnt recorded in March 2023.

Why have imports fallen m-o-m?

Iron ore imports into the country fell due to several reasons -

• The Chinese market was expecting good demand in April but due to lower margins, demand was not up to the mark and inventories were high.
  
  
• Steel mills in the country announced production cuts in response to low demand and falling imports in the month. China Iron and Steel Association (CISA), on 24 April, convened a conference to call on the country's steelmakers to initiate production curbs as a joint effort to maintain the stability of the domestic steel market, according to a post from the association's official website.
  
  
• In the last week of April, the market remained closed on account of the Labour Day holidays.
  
  
• Also, April shipments were lower than those in March due to falling steel margins and Cyclone Ilsa which threatened Australia's northwest area. As a result, Australian-origin iron ore Fe62% fines prices fell sharply to $117.21/t CFR China in April as against $126.95/t in March.
  
  

Imports increase by 9% y-o-y in Jan-Apr'23

Cumulative iron ore imports into the country were recorded at 384.84 mnt in January-April 2023, up by 8.6% as against 354.41 mnt in the year-ago period.