China's pellet imports rise nearly 40% y-o-y in Jan-May'23
China’s imports of iron ore pellet increased by 38% y-o-y to 11.59 million tonnes (mnt) in January-May’23 as against 8.41 mnt recorded in the correspondin...
China's imports of iron ore pellet increased by 38% y-o-y to 11.59 million tonnes (mnt) in January-May'23 as against 8.41 mnt recorded in the corresponding period last year (CPLY), as per data maintained with SteelMint.
India remained the largest exporter of pellets to China at 3.81 mnt followed by Iran and Kazakhstan with 2.61 mnt and 1.36 mnt, respectively in Jan-May'23.
- China's crude steel output up in Jan-May: China's crude steel production increased by 1.6% y-o-y to 444.6 mnt during January-May. Better margins towards the beginning of the year, supported use of high-grade raw material like pellets.
- 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 pellet imports.
- Shipments from India rise post export duty removal: Shipments from India fell from June-November 2022 primarily due to the export tariff of 50% on iron ore (all grades) and 45% on pellets imposed by the government in end-May last year. Tariffs were removed towards end of November, and shipments have increased steadily since then.
Imports rise m-o-m in May
China's pellet imports increased by 10% m-o-m to 2.35 mnt in May as against 2.13 mnt in April. India was the largest exporter with 640,000 t in May followed by Iran and Kazakhstan with 490,000 t and 220,000 t, respectively.
Outlook
Pellet imports may slow down given declining steel margins and production curbs in key provinces in China on environmental concerns.
