China’s iron ore imports in August rose 0.4% from a month earlier, defying analysts’ expectations for a decline, as multiple typhoons battered unloading at ports and delayed customs clearance in July.
The world’s largest iron ore consumer brought in 108.54 million metric tons of the key steelmaking ingredient last month, up 3.1% from the year before, data from the country’s General Administration of Customs showed on Tuesday.
Four analysts estimated August ore imports at between 107 million and 108 million tons ahead of the data release.
“It beat our expectations, as we forecast a monthly fall of up to five million tons last month,” said Steven Yu, a senior analyst at Mysteel, a consultancy.
“The monthly rise in ore imports might be because some cargoes arriving in July only cleared customs last month. Our earlier forecast showed July imports would be higher than the month-ago level, but it exhibited a monthly decline instead,” Yu said.
China has been battered by frequent and intense typhoons over the past two months as part of an emerging El Niño weather pattern.
But higher shipments in August offset some of the typhoons’ effect in the month.
Global iron ore shipments to China in August rose 6.6% from a month earlier, data from shipping tracker Kpler showed.
Ore demand, however, was weaker last month, with the average daily hot metal output falling by 0.7% month-on-month, according to a Reuters calculation based on data from Mysteel.
In the first eight months of this year, iron ore imports totaled 845.27 million tons, up 5.5% from a year earlier.
Resilient steel exports
China’s steel exports in August stayed resilient, as export prices remained competitive and overseas demand held firm, analysts said.
August outbound steel shipments rose 0.4% from the month before and 6.8% from a year earlier to 10.16 million tons, staying above 10 million tons for a fourth straight month.
“Price competitiveness of Chinese steel appealed some emerging markets that are price sensitive; also, shipments to Africa and South America increased as Middle East tensions disrupted shipping flow via the Persian Gulf,” said Kexin Bai, an analyst at consultancy Shanghai Metals Market (SMM).
Total steel exports from January to August declined 3% from a year earlier to 75.15 million tons.
(Reporting by Amy Lv and Lewis Jackson; Editing by Jacqueline Wong, Thomas Derpinghaus and Jamie Freed)
