According to data from the China Iron and Steel Association (CISA), Chinese steel companies increased their iron ore imports by 6.7% from January to July 2024 compared to the same period last year, bringing the total to 713.77 million tons.
In July, domestic steelmakers imported 102.81 million tons of iron ore, up 5.3% from the previous month and 10% from July 2023. Despite this growth, import volume remained below market expectations at 103-110 million tons.
The hot weather conditions in July negatively affected construction activities, leading to a decrease in demand for steel and iron ore. As a result, raw material prices fell by 6-7% during the month. In particular, September futures on the Dalian Stock Exchange were priced at 779 yuan (USD 107.45) per ton as of July 27, while the Singapore Exchange was quoted at USD 101.85 per ton.
However, in early August, price quotes rebounded due to optimism about possible stimulus measures following several important government meetings.
In 2023, steel imports to China fell by 27.6% year-on-year to 7.64 million tons. Iron ore imports in the same year increased by 6.6% compared to 2022, reaching 1.179 billion tons. China is expected to produce 1.019 billion tons of steel in 2024, up 0.6% from the previous year, halting a two-year decline in the country’s metallurgical sector.
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