-
China’s 2018 iron ore imports fall 1 pct,first annual drop since 2010
4,947views 2019-01-25 20:21China’s 2018 iron ore imports fell by 1percent from the previous year, the first annual decline since 2010, accordingto data from the General Administration of Customs on Monday.
Full-year iron ore imports fell to 1.064billion tonnes in 2018 from an annual record of 1.075 billion tonnes in 2017,the data showed. The ore imports, though, still exceeded 1 billion tonnes for athird year running.
Arrivals for iron ore shipments in Decemberrose to 86.65 million tonnes, up from 86.25 million tonnes in November,official customs data showed.
The fall in iron ore purchases for 2018came as a 70 percent plunge in profit margins since late October cut theincentive for steelmakers to ramp up output and restock raw materials.
China is also expected to reduce iron oreconsumption in 2019, as steel output declines amid waning demand in bothdomestic and global markets, the China Metallurgical Industry Planning and Research Institute said last month.
However, the decline could be cushioned somewhat as mills alter their production strategies.
“With lower profit margins this year, steelmills would increase consumption of lower-grade iron ore, while reducing demand for medium- and high-grade ore,” said Wang Yilin, an analyst at Sinosteel Futures.
She also expected steel mills to cut outputfrom electric-arc furnaces but maintain steady operation of blast furnaces,which will underpin support for iron ore.
Electric-arc furnaces only use scrap metaland electricity to produce crude steel, but their costs could still be higher than blast furnaces that use coking coal and iron ore.
“China’s supply side reforms have beendigested in the past two years and profits for steelmaking will return to areasonable range in 2019,” Wang said.
Average profit margins for rebar productionnow hover around 300 yuan ($44.50) a tonne, while hot-rolled coil production is barely maintaining a profit, according to data tracked by Jinrui Futures and Sinosteel Futures.
Steelmaking profit margins hit a peak of more than 1,500 yuan a tonne in late 2017.
STEEL TRADE
Steel exports from China rebounded in December from a 9-month-low to reach 5.56 million tonnes, up 4.5 percent from November’s 5.32 million tonnes, customs data showed.
However, total exports continued to fall in 2018, curbed by a bruising trade war with the United States and competition from steel products from India, Russia and Turkey as Chinese prices climbed.
Benchmark construction steel rebar pricesrose as much as 28 percent at 3,976 yuan a tonne in August before falling to 3,400 yuan by the end of 2010, but are still up 10 percent from the start ofthe year.
Source: Reuters (Reporting by Muyu Xu and Dominique Patton; Editing by TomHogue and Richard Pullin) -
Recent Articles
- Dry Bulk Net Fleet Growth in 2018 At 3%
- 【权威】重磅,压载水公约今日起对我国正式生效!
- China’s 2018 iron ore imports fall 1 pct,first annual drop since 201
- 2019年干散货海运贸易将小幅增长
- Coal shipment from South Africa arrives in Ukraine Black Sea por
- Asia Dry Bulk-Capesize rates could slip further on uncertain cargo
- China compiled price index for iron ore used for first time
- China’s September coal output down 2.2 percent
- Iron ore at risk of slumping below $US50
- India’s September coal imports slump 27 pct to 12.6 mln tonnes
Hot Articles
- Coal shipment from South Africa arrives in Ukraine Black Sea port: Ministry
- Panamax bulker rates ‘up by the hour’
- Asia Dry Bulk-Capesize rates could slip further on uncertain cargo demand
- China compiled price index for iron ore used for first time
- 【权威】重磅,压载水公约今日起对我国正式生效!
- Iron ore recovers as Chinese buyers cautiously return
- 2019年干散货海运贸易将小幅增长
- Iron ore at risk of slumping below $US50
- India’s September coal imports slump 27 pct to 12.6 mln tonnes
- Soy and sugar cargoes boost South Atlantic rates