China: Iron Ore and Pellet Imports Up 1.5% Y-o-Y in Jan-Feb’20

According to General Administration of Customs, China - the world's largest iron ore consumer and importer recorded iron ore and pellet imports at 176.8 MnT for Jan-Feb '20. The imports witnessed a slight rise to 1.5% as compared to 174.3 MnT in Jan-Feb '19. The increase in imports were attributed to restocking by Chinese mills ahead of China’s week-long Lunar New Year holiday starting from 24th Jan’20 .

As per data compiled by SteelHome consultancy, iron ore inventory at major Chinese ports witnessed at 129.75 MnT towards early Jan’20 and increased to 131.6 Mnt towards beginning of Feb’20 just after the holidays and virus outbreak. However, the stocks again pulled down to 126.95 MnT by the end of Feb '20.

The Coronavirus outbreak suppressed the transportation and also retarded the downstream activities such as construction, in turn reducing the need of raw material. It is also expected that it may further delay spring restart of construction activities in China and may in turn affect imports.

Average global iron ore fines prices moved down in Feb’20

Monthly average global iron ore fines (Fe 62%) price moved down by 7% to USD 86.5/MT, CFR China in Feb’20 against USD 92.63/MT, CFR China in Jan' 20.