China: Iron ore imports rise 6% y-o-y in Q1CY'24

China's imports of iron ore and concentrates totalled 310.125 million tonnes (mnt) in the Q1CY'24 (January-March, 2024) marking a 6% y-o-y increase as compared to the calendar year Q1CY'23, as reported by the General Administration of Customs of the People's Republic of China.

In March 2024, China imported around 100.718 mnt of iron ore and its concentrates, recorded an increase of 0.49% y-o-y as compared to the previous year.

Factors behind hike in iron ore imports:

• Rise in crude steel output: The crude steel production in January-February, 2024 stood at 168 mnt, higher than 2% y-o-y as compared to the previous year.
  
  
• Global iron ore prices remain range-bound: Benchmark Fe 62% Australian fines prices inched down to around $124/t CFR China in Q1CY24 from around $125/tonnes (t) in Q1CY23 amid weak fundamentals and drops in the finished steel demand due to poor liquidity. Meanwhile, the market remained worried about the decreased steel demand downstream, particularly without any support from the Chinese government. Due to poor production margins and lack of demand from steel mills, both steelmaker and local miners announced a reduction of 30% in operating rates.
  
  
• Positive outlook - The interest rate cut by Chinese banks at the end of 2023 and expectations of enhanced financial market liquidity in the first quarter of 2024 bolstered market confidence, indicating the nation's commitment to utilising monetary measures for swift economic development.
  
  

Outlook: Iron ore import from China is estimated to increase after Q1 as after holidays market activity will increase and following the improvement in steel demand.