China: Iron ore imports rise marginally m-o-m in Apr'24

China, the world's largest iron ore consumer and importer recorded iron ore and pellet imports at 101.818 mnt in April, 2024, according to General Administration of Customs. The imports witnessed 1.09% increase m-o-m compared to 100.718 mnt in March, 2024.

Meanwhile, y-o-y China's iron ore imports rose by 13% as compared to the previous year.

The rise in demand for steel has resulted in better margins, prompting mills to ramp up their restocking activities. Also, China is accelerating the issuance of special bonds worth $138 billion for construction projects to boost domestic steel consumption.

Factors affecting iron ore imports:

• Global iron ore prices increase m-o-m: Benchmark Fe 62% Australian fines prices inched up m-o-m to $111/t CFR China in April, 2024 from $110/tonnes (t) in March, 2024 amid regained market optimism due to strong demand fundamentals and an uptick in macroeconomic factors. Prices are being supported by the resumption of steel production and restocking activity for May delivery.
  
  
• Iron ore port inventory rises: Iron ore inventory at Chinese ports rose in April, according to SteelHome data. Inventory increased to 144 mnt in April, 2024 to 140 mnt in the previous month.
  
  

Outlook: Iron ore import from China is estimated to increase in the coming months as mills have returned from holidays and expectation of demand as well as improving import margin have boosted market participants' confidence.