CHINA’S iron ore imports in November climbed 3.4 per cent from October, customs data showed on Thursday (Dec 7), as improved steel mill margins and a rebound in the yuan underpinned buying of the key steelmaking ingredient.

The world’s largest iron ore consumer brought in 102.7 million metric tonnes of the key steelmaking ingredient last month, up from 99.4 million tonnes in October, data from the country’s General Administration of Customs showed. The volume compared to 98.9 million tonnes imported in November 2022.

The November imports stayed at an elevated level for the fourth consecutive month, above 100 million tonnes for the fifth time so far this year.

The higher imports last month came as more than a third of steel mills surveyed were operating at a profit by the end of the month, versus less than one-fifth in late October, data from consultancy Mysteel showed. “While consumption exhibited monthly decline, inventories at mills increased thanks to restocking, reflecting high imports,” said Chu Xinli, a Shanghai-based analyst at China Futures.

Iron ore inventories at mills surveyed jumped by 3.5 per cent on the month to 93 million tonnes in late November, although the daily average hot metal output among mills surveyed declined by 3 per cent on the month to 2.4 million tonnes last month, Mysteel data showed.

China’s yuan appreciated 2.5 per cent against the US dollar in November.

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China’s iron ore imports in the first 11 months of 2023 jumped 6.2 per cent to a record high of 1.08 billion tonnes, the customs data also showed, with analysts expecting the annual total to hit an all-time high.

December ore imports are likely to stay at nearly the same level as last month, as mills need to purchase cargoes to meet production requirements during the New Year holiday in early January, said Cai Yongzheng, a Nanjing-based director of Jiangsu Fushi Data Research Institute. “Buyers will make settlement for their seaborne cargoes before the end of the year amid the strengthening yuan, which means volumes this month won’t be small.”

Also, steelmakers will start winter restocking in December to meet production needs over the Chinese New Year holiday in February, said analysts.

China’s exports of steel products in November rose 43.3 per cent from the prior year to 8.01 million tonnes, and 0.9 per cent higher from 7.94 million tonnes shipped abroad in October, customs data showed. Total steel exports from the world’s largest steel producer were 82.7 million tonnes from January to November, a rise of 35.6 per cent year-on-year, with the 2023 total well on track for the highest since 2016.

China imported 614,000 tonnes of steel products last month, down from 750,000 tonnes in November 2022, with the total over the January-November period at 7 million tonnes, down 29.2 per cent from a year earlier, according to the customs data. REUTERS