In June this year, China’s imports of iron ore decreased, though the decrease rate was smaller compared to the previous month.
China imported 89.417 million mt of iron ore in June, 0.4 percent down from May and 12.1 percent lower year on year, as announced by the Chinese customs authorities on July 13.
In June, iron ore prices declined first, hitting their lowest level during the month at $202/mt CFR on June 7. Later, iron ore prices moved up again, reaching $220/mt on June 15, though they softened again later due to the production restrictions ahead of the 100th anniversary of founding of the Communist Party of China.
Strong crude steel production in the first half this year supported iron ore import volumes and prices. Iron ore imports in China increased by 2.6 percent year on year in the first half, reaching 560.705 million mt.
However, expectations for the second half of 2021 are more negative as, with the expected crude steel production cuts which may reach 30 percent, iron ore demand may retreat further and this may impact prices. According to some investment banks, import iron ore prices in China may fall to $170-190/mt CFR in the second half of the year.