SHANGHAI, Nov 9 (SMM) - Customs data showed that China’s iron ore imports stood at 94.98 million mt in October, down 4.75% month-on-month, but up 3.68% year-on-year. From January to October, the imports totalled 917.42 million mt, a year-on-year drop of 1.7%. China's iron ore imports rose in September as the capacity utilisation rates of blast furnaces picked up and as some companies cleared their cargoes through customs in advance due to the seven-day National Day holiday in early October. The month-on-month decline in imports in October was mainly due to the National Day holiday. However, the daily average import volume in October rose to 3.96 million mt, exceeding September’s 3.32 million mt. Some steel mills put their blast furnaces under maintenance due to severe losses, weighing on the demand and prices of iron ore. As the prices of imported ore fell more sharply than domestic ore, some traders took this opportunity to ramp up the imports for profits, contributing to the increase in the daily average import volume.
More steel mills will reduce their production in November, should their losses expand. The environmental protection-driven production restrictions in north China during the heating season will suppress the production of pig iron. Overseas mines are expected to ramp up their shipments in November so as to achieve their annual targets. Therefore, SMM expects China’s iron ore imports to increase in November.
