China: Iron ore imports down 3% y-o-y in Jan-Sept

China, the world's largest iron ore consumer, recorded imports of the material (including pellets) at 842 million tonnes (mn t) in Jan-Sept'21, according to the General Administration of Customs. Import volumes were relatively down by 3% y-o-y against 868.66 mn t seen in the corresponding period last year (CPLY).

Imports of iron ore in Sept'21 were recorded at 95.6 mn t, a marginal decrease of 2% m-o-m as compared to 97.49 mn t in August. On a yearly basis, the same slipped by 12% y-o-y due to decreased demand amid production curbs and slowdown in construction activities.

China spot iron ore prices fell by $40/t in Sept'21

The average global iron ore fines (Fe 62%) index moved down to $121/tonne (t) CFR China in Sept'21 as against $161/t, CFR China in Aug'21, as per SteelMint's assessment. While some participants chose to wait for greater clarity on iron ore demand, there were expectations of weaker iron ore demand in anticipation that production cuts could continue to meet the year-end steel output target.

The spot iron ore prices remained bearish in the last two months. However, demand for medium- to high-grade fines as well as direct feed remained high on expectations of winter sintering controls. This resulted in insignificant fluctuations in the steel-making raw material prices in the domestic and spot markets.

Outlook

The measures to curb air pollution in autumn and winter will be stronger and extend over a longer period of time. Therefore, a decline in iron ore imports from China is to be expected in the coming months and production of the steel industry will be restricted. However, some buying interest picked up after the Golden Week holidays in China recently but market participants do not foresee a sharp increase in monthly import volumes in the near term.