China increased iron ore imports to a record 1.24 billion tons in 2024

In 2024, China increased iron ore imports by 4.9% compared to 2023 to 1.24 billion tons. The country has been importing raw materials in record volumes for the second year in a row. In 2023, the volume amounted to 1.18 billion tons (+6.6% y/y). This is reported by Reuters with reference to customs data.

These results were achieved due to lower iron ore prices, which stimulated purchases, and strong demand driven by active Chinese steel exports, which exceeded 110 million tons in 2024.

Despite record iron ore imports, steel production in China declined. In the first 11 months of 2024, steel production fell by 2.7% compared to the same period last year. The decline was mainly among electric arc furnace producers that use scrap as a raw material. They had to cut production due to a shortage of scrap metal and weak demand in the construction sector. At the same time, blast furnace steelmakers remained competitive even amid the real estate crisis.

Increased imports of iron ore led to a 31% decline in prices in 2024, encouraging traders to buy cheap raw materials and build up inventories. According to Steelhome, at the end of December, iron ore stocks in ports increased by 28% year-on-year to 146.85 million tons. In December, China imported 112.49 million tons of iron ore, up 10.4% from November and 11.5% from December 2023.

Analysts predict that iron ore imports will remain high in 2025 as traders continue to buy cheap raw materials. At the same time, domestic demand for steel remains affected by the ongoing crisis in the construction sector.

As GMK Center reported earlier, global seaborne iron ore imports increased by 3.6% year-on-year – to 1.707 billion tons in 2024. The growth was almost entirely driven by China, the world’s largest buyer of this key steelmaking raw material.