Factors Behind the Record Imports
Price Decline: A 31% drop in iron ore prices in 2024 encouraged traders to buy cheap raw materials and increase inventories. By December, iron ore stocks at Chinese ports had grown by 28% year-on-year, reaching 146.85 million tons.
Steel Exports: China's steel exports exceeded 110 million tons in 2024, maintaining strong demand for iron ore despite challenges in domestic steel production.
Production Trends: While imports rose, Chinese steel production fell by 2.7% in the first 11 months of 2024 compared to the same period in 2023. Electric arc furnace (EAF) producers reduced output due to a scrap metal shortage and weak construction sector demand. Meanwhile, blast furnace operators remained competitive, even amid a real estate downturn.
December Surge in Imports
China imported 112.49 million tons of iron ore in December alone, a 10.4% increase from November and an 11.5% rise from December 2023. Analysts attribute this to opportunistic buying amid declining prices.
Outlook for 2025
China’s iron ore imports are expected to remain high in 2025, driven by continued low prices and strong steel export activity. However, domestic steel demand is likely to remain subdued due to ongoing challenges in the co
Globally, seaborne iron ore imports rose by 3.6% in 2024 to 1.707 billion tons, with China accounting for the majority of this growth as the world’s largest iron ore importer.
