In January-February of this year, China's iron ore imports totaled 210.023 million tons, which is 10.0 percent more than last year, according to the latest data released by the General Administration of Customs of China (GACC). Although solid demand was cited as the main reason for fairly strong iron ore imports, increased shipments from Australia at the end of December also exacerbated the situation. Although the monthly volumes in both January and February are less than the record high of 119 million imported by China in December, market sources still consider these import volumes to be very strong.
Some Chinese companies sought to buy, expecting a recovery in demand for steel after the Chinese New Year holiday, but real steel consumption, in line with expectations, decreased in January-February. The total iron ore reserves in these two months increased from 160 million tons in early January to about 171 million tons in early March.
Imported iron ore prices are expected to rise in March after some losses in February, but growth may be very limited as improved demand will be accompanied by stable supply at high levels.
