China: Iron ore imports rise by 5% m-o-m in Jul'24

China, the world's largest iron ore consumer and importer recorded iron ore and pellet imports at 102.813 million tonnes (mnt) in July, 2024, according to General Administration of Customs. The imports witnessed 5% m-o-m increase compared to 97.613 mnt in June, 2024. This increase is driven by robust market fundamentals and active procurement of cargoes at ports.

Meanwhile, China's iron ore imports rose by 10% y-o-y as compared to the previous year.

The market outlook was bolstered by better-than-expected economic data from the US, where the Q2CY'24 GDP growth was reported at 2.8%, surpassing the previous quarter's 1.4%.

Factors affecting iron ore imports:

• Rise in crude steel output: The crude steel production in June, 2024 stood at 91.60 mnt, higher than 0.2% y-o-y as compared to the previous year.
  
  
• Global iron ore prices remain range-bound: Benchmark Fe 62% Australian fines prices inched down m-o-m to $106/t CFR China in July, 2024 from $107/tonne (t) in June, 2024. The surplus of seaborne iron ore supplies has pressured spot prices, reducing margins for many mills. However, mills and traders are focusing on cost-effective low-grade fines rather than premium grade material. Enough finished steel inventory with the Chinese mills are also the reason for low demand.
  
  
• Iron ore port inventory rises: Iron ore inventory at Chinese ports rose in July, according to SteelHome data. Inventory increased to 150 mnt in July, 2024 compared to 147 mnt in the previous month.
  
  

Outlook: China's iron ore import is expected to remain robust in the coming months, supported by continued strong crude steel production and stable demand from downstream sectors.