China: Iron ore imports drop 2% m-o-m in Jul'23 as steel production cuts weigh

China - the world's largest iron ore consumer - recorded imports of the steelmaking ingredient at 93.47 million tonnes (mnt) in July'23, according to data published by the General Administration of Customs. Import volumes decreased by 2.1% against June; however, volumes increased by 2.4% from the corresponding period last year.

Amidst tighter steel production restrictions in China, iron ore demand remained impacted.

According to market reports, some Chinese steel mills got crude steel production control targets for 2023 that were mostly within 2022 levels, further influencing iron ore demand forecasts. In the third week of July, there was market chatter in Tangshan, China's largest steel production base, that local authorities in the city have strengthened the severity of production restrictions on steelmakers as part of this month's air quality improvement measures.

The average daily crude steel output of CISA-affiliated mills stood at 2.248 mnt in mid-July, up 0.33% from early-July. However, output went down by 0.6% m-o-m against mid-June.

Monthly average Australian Fe62% iron ore prices were largely stable at $112/t CFR China in July compared to June.

Cumulative import volumes in Jan-Jul'23 rose by 6.9% to 669.45 mnt compared to the same period a year ago, according to customs.