China’s iron ore imports fell 4.3% in 2021 from the previous year’s annual record, as steel production restrictions imposed to fight pollution crippled demand and lowered prices for the key raw material. steel mill of historic highs.
The world’s biggest consumer of iron ore brought in 1.12 billion tonnes of the commodity last year, compared with 1.17 billion tonnes imported in 2020, data from the General Administration showed on Friday.
For December, China imported 86.07 million tonnes of the raw material, down 18% from November, the data showed.
China consumed iron ore at a brisk pace in the first five months of 2021, supported by robust steel production as mills made decent profits supported by a recovery in demand after the first waves of the coronavirus pandemic.
However, imports began to contract annually as authorities urged steelmakers to reduce production to meet the annual target of keeping crude steel production stable. The slowdown in construction activity also dampened demand for the industrial metal.
During June-December 2021, China’s iron ore imports fell by nearly 10% year-on-year. Benchmark iron ore futures prices on the Dalian Commodity Exchange were down 45% in late December from their peak of 1,239 yuan per tonne in May.
“For 2022, iron ore supply from major miners is expected to remain stable, while the demand side is largely decided by the authorities’ policy regarding steel production controls,” said Zhuo Guiqiu, an analyst at Jinrui Capital.
A government-backed consultancy expects iron ore imports to continue falling to around 1.08 billion tonnes in 2022 due to falling steel production and increased use of steel scrap.
steel trade
Friday’s customs data also showed the country’s exports of steel products rose 24.6% to 66.9 million tonnes in 2021 from a year earlier, although mills and traders were urged by Beijing to ensure supplies for the domestic market.
China’s steel imports last year dropped 29.5% to 14.3 million tonnes, according to customs.
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