Iron ore import grows rapid in China

SteelOrbis Shanghai The figures released by Chinese Customs indicated that iron ore imports saw a sharp increase in the first half of the year. Iron ore imports for June totaled 28.37 million metric tons, up 4.16 million metric tons or 17 percent compared with May. The cumulative iron ore import from January to June totaled 161 million metric tons, up 30 million metric tons or 23 percent compared with the previous year, with $59.35/mt average price. Chinese iron ore market generally remained stable throughout last week, yet with better commercial activity and slight rebound in imported iron ore price. Relatively a great pressure still existed on the overall domestic iron ore market throughout the week, with fine ore prices in most regions fluctuating at a low price level, and a slight increase in trading volume in some northern regions. The domestic construction steel market saw a slight rebound last week, stabilizing the semis market gradually. Meanwhile, the cost and capital turnover pressure on all steel mills did not soften. Holding a “wait-and-see” attitude towards the future market, most of the domestic steel mills are quite cautious about the purchase and some steel mills have continued lowering their fine ore purchase prices by a small margin and controlling the purchase quantity, which led to a great trading pressure on the market. By the end of the previous week, the total iron ore inventory in China's twenty-three major ports was at 40.30 million metric tons, down 2.7 million metric tons week on week. The export price of Indian ore is still strong. The current FOB price of 63.5 percent ex-India fine ore is about $54/mt, and the CIF price of the same ore from Paradip Port, India to Tianjin Port, China is around $70/mt; while the price to Xiamen Port, China is around $68/mt CIF. The spot price of imported ore is still stable with small rebound for some mines. Overall, since the downward trend of finished steel market curbed the rise in iron ore prices, the iron ore market is expected to maintain the stable trend in short term.