China iron ore imports jump on firm demand

Beijing

CHINA'S iron ore imports in April rose 13 per cent from a month earlier on robust demand from steelmakers as downstream sectors started to emerge from lockdowns aimed at containing the coronavirus epidemic.

Arrivals of the steelmaking ingredient were 97.27 million tonnes last month, according to Reuters calculations based on data for the first four months of 2020 released on Thursday by the General Administration of Customs. That compares with imports of 85.91 million tonnes in March and 80.77 million tonnes a year earlier, when shipments from Brazil's top miner Vale SA were disrupted after a tailings dam disaster.

In the first four months of 2020, China brought in 360 million tonnes of iron ore, up 5.8 per cent from 340.21 million tonnes in the same period last year, according to customs.

"On a monthly basis, imports jumped as shipments from big miners were typically lower in the first quarter due to seasonal factors like weather conditions," said Zhao Yu, an analyst with Huatai Futures.

Vessel-tracking and port data from Refinitiv showed that arrivals of iron ore in April from Brazil jumped 12.7 per cent from a month earlier, while imports from Australia edged up 0.7 per cent.

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The spreading coronavirus pandemic has forced some steel producers in Asia to cut output in response to deteriorating demand.

However, Chinese demand for ore has been fuelled by mills ramping up production on an early recovery in construction activity and expectations that more government stimulus for infrastructure will revive consumption.

Capacity utilisation rates at blast furnaces in 247 mills tracked by consultants Mysteel rose for a seventh straight week to 81.68 per cent as. REUTERS