China Iron Ore Imports Tumble in November, Surprising Market

SHANGHAI, Dec. 17 (SMM) – Inbound shipments of iron ore to China were 67.40 million tonnes in November, down 15.10% on the month and 13.41% on the year, Shanghai Metals Market’s ferrous branch Steelease data shows.   

The closures of steel mills during Beijing’s APEC meeting in early November postponed applications for imports, one of main reasons behind the plunge in November’s imports, falling below 70.00 million tonnes for the first time since this February,

The pursuit of a lower VAT and production suspension at overseas mines also explains the sharp drop in imports, Steelease understands. 

In the face of continuous declines in price, importers prefer to unload shipments in bonded areas, and import those at lower prices, to reduce VAT, which is based on import price.   

China’s imports of iron ore are expected to be high in December due to the arrival of delayed shipments, leaving no easing of domestic’s spot supply pressures, Steelease expects.