Iron ore imports grew 7.4 pct in June 2023 YoY

China’s imports of iron ore climbed by 7.4pct in June from a year before, customs data showed, thanks to solid demand from domestic steelmakers.
The world’s largest iron ore consumer brought in 95.52 mln tons of the steelmaking ingredient last month, up from the 88.97 mln tons in June 2022, the General Administration of Customs said.
The June volume was slightly lower than the 96.18 mln tons imported in May, according to customs.
Chinese steelmakers maintained a relatively high operational rate last month to produce more steel products and generate more cash flow despite seasonally slow downstream steel demand, analysts said.
Rebounding steel prices contributed to improved steel margins, which also motivated mills to sustain production, said Wang Guoqing, a director at a Chinese consultancy firm.
The rise in steel prices last month was mainly driven by mounting expectations of a basket of stimulus measures to be rolled out to prop up China’s patchy post-pandemic economic recovery.
Steel mills that had suspended output have been encouraged to resume production due to the improved margins.
The relatively low raw material stocks at mills also provided some support for higher iron ore imports last month, analysts said.
China imported 576.14 mln tons of the steelmaking ingredient in the first half of 2023, 7.7pct higher than the same period a year earlier, according to customs.