China reduced iron ore imports by 4.9% m/m in September

In September 2023, Chinese steel companies reduced the import of iron ore by 4.9% compared to the previous month – to 101.2 million tons. This is evidenced by the data of the Chinese Iron and Steel Association (CISA).

Compared to August 2022, the volume of iron ore imports increased by 1.6%. The average cost of imports in September was $106.8/t, which is 1.1% less than in August.

In January-September, the country’s steelmakers increased iron ore imports by 6.7% compared to the same period last year – up to 876.65 million tons. The average import price in this period was $111.9/ton.

The decline in iron ore imports is likely due to a reduction in steel production at Chinese steel mills in late September due to mounting losses. At the same time, at the beginning of the month, production indicators increased.

China in January-September 2023 increased the export of steel products by 31.8% compared to the same period in 2022 – up to 66.82 million tons. In September of this year, China’s steelmakers shipped 8.06 million tons of steel for export, which is 2.6% less than in August.

As GMK Center reported earlier, January futures for iron ore, the most traded on the Dalian Commodity Exchange, as a result of the period September 22-29, 2023, decreased by 2.5% compared to the previous week – to 851.5 yuan/t ($116.64/t). At the same time, in September, iron ore quotations reached a peak of $123.37/t.