Chinese iron ore imports hit record in Dec 2015

Jan 15, 2016 01:51 GMT   Source:scrapmonster

By Anil Mathews (ScrapMonster Author)

January 14, 2016 06:16:40 AM

BEIJING (Scrap Monster): According to latest customs data, the Chinese iron ore imports surged higher by 17% from the previous month in December 2015. The imports during Dec ’15 totaled 96.27 million tonnes, in comparison with 82.130 million tons in November. The yearly imports by the country rose 2.2% to total 952.72 million tons in 2015, in accordance with the data released by the General Administration of Customs.

Iron ore imports are likely to drop during 2016. The slowing domestic economy and tighter pollution control mechanisms are likely to curb steel sector output during the year. The country’s crude steel output had declined by 3.1% to 781 million tons in 2015. According to government studies, the crude steel production is most likely to fall further during the current year. The weakness in demand is expected to continue. In addition, the bearish outlook on iron ore prices is likely to limit imports of the raw material. Iron ore prices had tumbled by over 40% during last year, thereby making it one of the worst performing commodities.

The report published early-December by the Metallurgical Industry Planning and Research Institute forecasts 4.2% drop in Chinese iron ore consumption to total around 1.07 billion tons in 2016.

The country’s iron ore imports had surged higher significantly by nearly 22% during November 2015 also. The imports had jumped higher from 67.395 million tons in Nov ’14 to 82.130 million tons in November last year.

Meantime, Chinese steel exports surged higher by nearly 11% to 10.66 million tonnes in Dec ’15. The full year exports during 2015were up by almost 20% to 112.4 million tonnes.