Iron ore imports to China increased to 92.52 million tons in May

Iron ore imports to China increased to 92.52 million tons in May.
China's iron ore imports rose 3% in May compared to the same month of the previous year, according to customs data released on Thursday after reduced supply cuts from major suppliers, Reuters reported.

According to the General Administration of Customs, the world's largest consumer of iron ore delivered 92.52 million tons of material last month, up from 89.79 million tons in May 2021.

Imports of materials for steelmaking have declined in recent months as miners in Australia face labor shortages caused by the pandemic and the Brazilian Valley struggles with weather conditions. In addition, exports of zhulezny ore from suppliers from Ukraine and Russia were suspended.

However, analysts say disruptions have eased in May and import appetite is strong despite weak consumption in China's huge steel industry.

“Iron ore production in Australia and Brazil has improved significantly from February lows, so it is not surprising that imports increased in May,” said Atilla Widnell, managing director of Singapore-based Navigate Commodities.

He added that utilization rates of Chinese blast furnaces have also exceeded iron ore imports as producers hope to quickly recover from the COVID-19 lockdown, which has led to a significant decline in port stocks during this period.

In the first five months of 2022, China imported 447 million tons of iron ore, down 5.1% compared to the same period of the previous year.