China iron ore imports rise 7.3% on year in January-February

CHINA’S imports of iron ore in the first two months of 2023 grew 7.3 per cent from the same period a year earlier, customs data showed on Tuesday (Mar 7), as buyers anticipated higher domestic steel demand in after the government lifted tough Covid-19 containment measures.

China, the world’s largest iron ore consumer, brought in 194 million tonnes of the steel-making ingredient in January and February, compared with 181.1 million tonnes over the same period in 2022, showed data from the General Administration of Customs.

China releases combined data for January and February to account for distortion created by the irregular timing of the week-long Chinese New Year holiday, which began on Jan 21 this year.

Refinitiv data showed 192.26 mln tonnes of iron ore from top iron ore suppliers Australia and Brazil was due to arrive in China in January-February.

Miners shipped more volume to China due to lacklustre demand in other markets, said a Beijing-based analyst who spoke on condition of anonymity.

“The year-on-year rise is in line with our expectations. Some miners shipped more volume (of iron ore) in mid-to-late December to catch up with annual targets, and this seemed to have been well reflected in the import numbers for January-February,” said Shanghai-based senior analyst Pei Hao at brokerage FIS.

“The March import volume may be lower than the January-February average, but a year-on-year increase is also expected,” Pei said.

China’s exports of steel products grew 49 per cent to 12.19 million tonnes in the first two months of the year versus the same period a year prior, the data also showed. REUTERS