In the January-February period this year, China’s iron ore imports amounted to 210.023 million mt, up 10.0 percent year on year, according to the latest data released by China's General Administration of Customs (GACC). Though firm demand was named as the main reason for the rather strong iron ore import volumes, the increase in shipments from Australia in late December also added to the situation. Though 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 view these import volumes as being very strong.
Some Chinese companies were eager to buy, expecting a rebound in steel demand after the Chinese New Year holiday, but real steel consumption, in line with expectations, was reduced in the January-February period. Total iron ore inventories for these two months rose from 160 million mt in early January to around 171 million mt in early March.
Import iron ore prices are expected to edge up in March after some losses in February, but gains may be very limited as improved demand will be accompanied by stable supply at high levels.