IRON and STEEL
According to General Administration of Customs, China - the world's largest iron ore consumer and importer, recorded 4% rise in iron ore imports to 94.85 MnT in Aug'19 against July’19 imports at 91.02 MnT. The imports have hit 19- months high as the level was last witnessed in Jan’18 at 100.32 MnT.
The imports for the month picked up amid easing supplies from largest iron ore miners. Vale- announced resumption at its Brucutu mines and also resumed partial operation at its Vargem Grande Complex in July’19. Besides, the increased infrastructure projects China favored imports.
However, on yearly basis import volumes depicted 6% rise as compared to 89.34 MnT in Aug'18.
The total imports for the CY19 (Jan-Aug'19) increased by 23-24 MnT to 709.97 MnT, as compared to 686.33 MnT in CY18 (Jan-Aug'18).
Average global iron ore fines prices down 23% in Aug’19
Monthly average global iron ore fines (Fe 62%) index price decreased sharply by 23% at USD 92/MT, CFR China in Aug’19 as against previous month at USD 120/MT, CFR China.
Outlook: As per SteelMint analysis, Chinese imports expected to be volatile amid increased supply and inventory level at port.
As per data compiled by SteelHome consultancy, Iron ore inventory at major Chinese ports increased to 126.7 MnT last week as compared to 125.25 MnT a week ago.