China : Iron Ore & Pellet Imports Up Marginally in Q1 CY20

According to the General Administration of Customs, China - the world's largest iron ore consumer and importer recorded iron ore and pellet imports at 262.7 MnT during Q1CY '20. The imports witnessed a slight increase by 1.3% as compared to 259.33 MnT in Q1CY'19. The increase in imports was attributed to restocking by Chinese mills ahead of China's week-long Lunar New Year holiday starting from 24th Jan'20.

The Chinese imports of iron ore and pellet for the month of March'20 witnessed at 85.91 MnT.

As per data compiled by SteelHome consultancy, the iron ore port inventory at major ports reported at 126.25 MnT towards the beginning of Mar'20 and fell to 121.15 MnT towards the end of the month.

The Coronavirus outbreak suppressed the transportation and also retarded the downstream activities such as construction, in turn reducing the need of raw material towards the end of the quarter. However after the pandemic, China has recovered aggressively with construction activities gaining pace which has supported semi-finished steel imports.

Average iron ore prices up slightly in Q1CY20

The average iron ore fines (Fe 62%) prices in Q1 CY20 increased to USD 89.1 /MT as against USD 88.4/MT in Q4CY19. Monthly average global iron ore prices increased to USD 88.1/MT, CFR China in Mar'20 compared to USD 86.5/MT, CFR China in Feb'20.