China Iron Ore Imports Drop Marginally in CY18

According to General Administration of Customs, China - the world's largest iron ore consumer and importer recorded iron ore imports at 1,064.3 MnT in CY18. The imports have dropped marginally by 1% as against CY17 imports at 1,075 MnT. The fall is first annual drop since 2010.

The drop is owing to reduced restocking demand due to narrowing steel margins in last quarter of the year. The steel mills are further expected to reduce consumption of medium and high grade ore in 2019. The continued need to lower production cost may lead to reduced output from electric arc furnace than the comparatively less expensive blast furnace output.

The monthly imports have recorded slight increase in Dec'18 to 86.65 MnT as against Nov'18 imports at 86.25 MnT.

Average global iron ore fines prices dropped marginally in CY18

Yearly average global iron ore fines (Fe 62%) prices dropped slightly to USD 70/MT, CFR China in CY18 compared to USD 71/MT, CFR China in CY17. On monthly basis, the average price dropped to USD 69/MT in Dec'18, CFR China as against being USD 73/MT, CFR China a month ago.