Jiangsu port sees decrease in scrap, iron ore imports

Jiangsu port sees decrease in scrap, iron ore imports

Scrap and iron ore imports at China's Jiangsu port decreased for the first time this year in April. Specifically, scrap imports decreased 38% month on month to 209'000 tons in April 2005. At the same time, iron ore imports fell 5.7% month on month to 2.49 million tons. Through the first four months of 2005, Iron ore imports have only reached 10% of 2004's yearly total. On the other hand, despite the sharp drop in April, scrap is still on pace to break 2004's total. With only a third of the year gone, scrap imports have already reached 40% of 2004's yearly total. April's decrease in raw material imports can be mainly attributed to Beijing's macro-control policies. For example, the reduction of the export rebate for steel products, from 13% to 11%, plus the cancellation of the billet/slab export rebate has lead to shrinking profit margins among China's steelmakers and export enterprises. In addition, the expansion of output has caused prices of steel products to dip. This could be yet another factor in the April downturn in raw material imports at Jiangsu.