In July, China's iron ore imports increased by 5.3% MoM, but a decline is expected in August

In July, the import volume of iron ore and its concentrates was 102.813 million mt, up 5.3% MoM. The significant increase in iron ore imports in July was mainly due to the following four reasons: 1. After the end of the quarter-end rush by overseas mines, iron ore gradually arrived at ports. 2. Pig iron production remained high in July. Although the demand for iron ore slightly decreased, overall demand remained strong. 3. The drop in iron ore prices stimulated some purchases. 4. There was one more working day in July compared to June.

Looking ahead to August, the impact of the off-season for steel demand is becoming more pronounced. Steel mills across the country are generally facing pressure from losses, forcing them to conduct blast furnace maintenance and shutdowns. It is expected that pig iron production will significantly decline, dragging down the demand for iron ore. Additionally, the maintenance of overseas mines in July led to a reduction in shipment volumes. Therefore, it is expected that iron ore imports in August will decrease MoM.