Chinese iron-ore imports surge; mounting stockpiles a big concern

Steel News  |  2013-05-23 09:26:15   |   By

The latest data released by the Chinese General Administration of Customs indicates that the iron ore imports of the country have surged during the month of April

SHANGHAI (Scrap Monster) : The latest data released by the Chinese General Administration of Customs indicates that the iron ore imports of the country have surged during the month of April. The weakening demand has led to increasing stock piles.

Australia was the top exporter of iron-ore to China. The total iron-ore imports from Australia during April touched 32.28 million mt, which is higher by 0.3% month-on-month and 27% higher year-on-year. Australia accounted for almost 48% of the total imports of the country. The second largest supplier of iron-ore was Brazil. China’s imports from Brazil totaled 12.58 million mt, which is 2% lower when compared to same month a year ago. Also the country’s imports from India have also dropped 71.1% year-on-year, plunging to 1.14 million mt in April.

On the other hand, the rising inventories at Chinese ports due to weaker domestic demand are causing concerns. Weekly inventories for the period from May 14th to 20th were at 72.49 million tonnes, higher by 0.81% week-on-week.

The slowdown of Chinese economy has forced the steel smelters to lower the production, thereby reducing the demand of raw material. The Chinese economy grew much slower by 7.7% in Q1 2013 when compared to 7.9% growth recorded in Q4 2012. The lower demand has weighed on the iron-ore prices which are now at their lowest levels.