June iron ore imports up 2.2% y/y, down 4.3% m/m

Iron ore imports in H1 up 6.2% y/y

Steel exports in H1 up 24% y/y

Steel imports in H1 down 3.3% y/y

Adds July imports forecast and steel trade data in paragraphs 8-12

China's iron ore imports fell 4.3% in June from the previous month, customs data showed on Friday, as buyers reduced purchases amid high portside inventories and expectations of seasonally slow demand.

The world's largest iron ore consumer brought in 97.61 million metric tons of the key steelmaking ingredient last month, data from the General Administration of Customs showed.

It was lower than analyst forecasts of 98 million-100 million tons in June. China had imported 102.03 million tons imported in May and 95.52 million tons in June 2023.

"The price drop in June constrained shipments of some non-mainstream cargoes; also shipments among some mainstream miners also fell after having achieved the half-year targets," said Xie Qingwei, a Yantai-based analyst at consultancy Shanghai Metals Market.

Iron ore prices SH-CCN-IRNOR62 fell more than 6% last month, dragged down by weakening steel demand amid heatwaves and heavy rain in China's southern regions, high portside stocks and concerns over demand prospects given market speculation on steel output curbs.

"Even though there is a surge in shipments in the last two weeks in June, it takes at least two weeks to arrive in China, so it will probably be reflected in July data," SMM's Xie added.

In the first half of 2024, China's iron ore imports climbed 6.2% on the year to 611.18 million tons, the data showed.

Iron ore imports in July will likely be higher than June, said analysts, citing a jump in shipments in the second half of June.

The forecast for July imports ranges from 103 million to 110 million tons.

STEEL TRADE

China's steel exports in June climbed by 16.5% from a year earlier to 8.75 million tons.

Steel exports in the first six months of the year jumped by 24% from the prior year to 53.4 million tons, the data showed.

China's steel imports last month dipped 5.7% on the year to 575,000 tons, with the total from January to June falling 3.3% year-on-year to 3.62 million tons.

Source: Reuters