In December last year, iron ore imports in China increased by 11.7 percent month on month and were up 16.9 percent year on year, reaching 101.3 million mt.
In the full year of 2019, China’s imports of iron ore and iron ore concentrate amounted to 1.069 billion mt, up 0.5 percent year on year, shifting from a year-on-year decline of 0.7 percent in the January-November period. Though shipments from major miners in Australia and Brazil declined in the first half of last year, supply volumes improved steadily in the second half.
Moreover, strong demand from Chinese customers led to higher import volumes and stronger-than-expected prices. Iron ore prices increased in December, moving up from $87.5/mt CFR early in the month to $92.1/mt CFR on December 31. Also, as of December 31, imported iron ore inventory at Chinese ports totaled 127 million mt, increasing by 2.53 percent month on month.
Since demand will slacken due to the approaching Chinese New Year holiday, iron ore prices will likely fluctuate within a limited range.