China: Iron ore imports rise over 7% y-o-y in H1CY'23 on higher steel output

China - world's largest iron ore consumer - recorded imports of the steelmaking ingredient at 95.52 mnt in Jun 2023, according to data published by the General Administration of Customs. Import volumes increased by 7.4% from the same month a year before.

Cumulative import volumes in Jan-Jun'23 rose by 7.7% to 576.14 mnt compared to the same period a year ago, according to customs.

Why have imports risen y-o-y in H1CY'23?

• Higher crude steel output- Crude steel production in China increased by 1.6% y-o-y to 444.6 mnt in Jan-May'23, as per data released by WSA.
  
  
• China's domestic iron ore production falls: China, the world's largest iron ore consumer, recorded run of mine (ROM) production at 391.352 mnt during January-May against 434 mnt in January-May'22. Although bulk of the production was low grade ore, drop in volumes may have supported increased iron ore imports.
  
  
• China's iron ore port inventory edges down: Iron ore inventory at major Chinese ports inched down by 0.65 mnt to 125.7 mnt on 29 June compared to 126.35 mnt last week, according to SteelHome data. The volumes have come down from over 140mnt levels seen in Feb'23
  
  
  

Outlook

China's iron ore imports, dovetailing with its decarbonisation policy, are seen declining. As per SteelMint's estimates, by 2030, the country's iron ore imports are likely to touch 900 million tonnes (mnt). This would be a decline of around 19% compared to a little over 1,100 mnt imported in 2022.