China Iron Ore Imports Hit 5-Month Low in Nov'18

According to General Administration of Customs, China - the world's largest iron ore consumer and importer recorded iron ore imports at 86.25 MnT in Nov'18. The monthly iron ore import figures have dropped to 5-months low. On monthly basis, China iron ore imports were down by 2% compared to 88.4 MnT in Oct'18. The drop is owing to reduced restocking demand due to narrowing steel margins.

Amid falling steel margins, China's iron ore imports have moved down. Chinese HRC export offers fell by around USD 50/MT M-o-M in Nov'18 amid decline in domestic steel prices.

On yearly basis, Chinese imports have dropped 9% against 94.5 MnT in Nov'17.

The total imports for Jan-Nov'18 witnessed fall of 2% to 977.7 MnT, as against the same duration previous year (Jan-Nov'17) at 1000.5 MnT.

The Chinese Hebei province has issued second level production cut from 22nd Nov amidst visible threat to environment, which is expected to enhance high grade ore demand. However, the comparatively less expensive medium grade and lower grade fines are in high demand due to continued need to lower production cost.

Average global iron ore fines prices stable on monthly basis

Monthly average global iron ore fines (Fe 62%) prices in Nov'18 recorded at USD 73/MT, CFR China, stable on monthly basis.