The Chinese customs office announced on the 7th that iron ore imports in October fell 4.2% month-on-month to 9.161 million tons, the second consecutive month of decline. Demand for iron ore was sluggish due to restraint of steel production.
It decreased by 14.2% from the same period of the previous year. The background is the government’s strengthening of environmental measures and the shrinking demand for steel products.
“In the next few years, China’s energy consumption curtailment will continue to weigh on crude steel production, which will have a negative impact on demand for imported iron ore,” GF Futures said in a customer report before the statistics were released.
Iron ore futures on the Dalian Commodity Exchange have fallen to about half the price of $ 1 = 1227 yuan ($ 191.90) from its peak in mid-May.
GF Futures expects China’s iron ore imports to decline 5-7% in the second half of this year due to lower steel production.
Iron ore imports from January to October decreased 4.2% year-on-year to 933.48 million tons.
Steel exports in October decreased 8.5% month-on-month to 4.5 million tons. It increased by 11.4% year-on-year.
Steel imports decreased 10% month-on-month to 1.13 million tons. In the same period of the previous year, it was 1.93 million tons.