SHANGHAI, Sep 7 (SMM) - According to the General Administration of Customs, China imported 96.21 million mt of iron ore and concentrates in August, an increase of 4.96 million mt MoM and a drop of 1.32% YoY. The imports totalled 722.92 million mt from January to August, a year-on-year decrease of 3.1%.
SMM believes that there are three main reasons accounting for the MoM increase in August:
1. Some overseas mines ramped up their shipments at the end of June in order to achieve their annual goals.
2. In July, the blast furnaces of steel mills were shut down for maintenance extensively, and the arrivals of ores booked by some steel mills were postponed to August.
3. August is a traditional peak season for the steel industry, and the market has high expectations for iron ore demand. In addition, the swap prices fell sharply in July, and overseas trade volume increased.
Entering September, the pandemic resurged again, and many places were closed, suppressing the demand for steel. The profit of steel mills is still on the break-even point, and they purchase cautiously. But as it is near the National Day holiday, the steel mills have rigid demand amid low inventories, hence ore prices are relatively strongly supported. The ore supply has also dropped to some extent amid frequent accidents recently. It is expected that the imports will keep rising in September.
