Iron Ore Imports Are Expected To Remain High In September, And May Decline In October

SHANGHAI, Oct 12(SMM) – In August, China imported 106.415 million mt of iron ore and ore concentrate, an increase of 12.939 million mt MoM, or 13.8%. The fading weather impact and immediate-need-promoted purchase were major reasons for the surge. According to the prediction of SMM, iron ore imports may drop a little in September. 1) Downstream demand improved during the traditional peak season, production resumption quantity of blast added, and pig iron output remained at a high level; 2) Pre-holiday replenishment boosted iron ore demand. However, due to the short number of days and holidays in September, port working hours relatively declined. According to SMM shipping data, arrivals at major ports increased slightly MoM in September. However, taking into account issues such as customs declaration procedures, SMM expects import volumes to decrease month-on-month in September.

SMM imports are expected to decline in October, mainly because 1) there are fewer working days in October; 2) steel mills are losing money and maintenance will increase. Steel mills in Shanxi, Yunnan, and other places have already implemented production cuts for loss control, so the output of pig iron is expected to decline. Therefore, demand for ore will also fall.