China's iron ore imports rose for a second straight year in 2024 to a record, up 4.9% from a year earlier, customs data showed on Monday, as low prices boosted purchases and demand remained resilient despite to a sluggish economy.
The world's largest consumer of iron ore imported a total of about 1.24 billion tons last year, according to the country's General Administration of Customs. from 1.18 billion tons in 2023, when an annual increase of 6.6% was recorded.
Although in the first 11 months of 2024, steel production fell by 2.7% compared to the previous year and had downward trend year-on-year, demand for a key steelmaking ingredient remained stable as BFB furnace steel production using iron ore remained more competitive in terms of costs.
By comparison, steel mills that use electric arc furnaces and accept scrap have had to either conduct maintenance or cut production due to losses amid ongoing constraints on scrap supplies.
In addition, analysts noted that traders who bought high-priced iron ore early last year continued to buy the key steelmaking ingredient as they seek to average out overall production costs and cut losses.
According to the data. consultancy Steelhome, rising imports contributed to falling prices and a buildup of port inventories, which rose 28% year on year to 146.85 million tonnes as of December 27.
Last year, prices for iron ore fell by 31%.
In December alone, China imported 112.49 million tons of iron ore, which is 10.4% more than 101.86 million tons in November.
December volume was 100.86 million tons compared to the same month in 2023.
Iron ore imports to China , is likely to hit a new high in 2025 as traders stockpile cheap ore for the world's biggest consumer despite a protracted property crisis that continues to weigh on domestic demand for steel, traders and analysts say.
Steel trade
In December, China exported 9.73 million tons of steel products, up 25.9% year on year and 4.9 % more month-on-month.
As a result, total steel exports this year reached the highest level since 2015 - 110.72 million tons, and the annual the increase was 22.7%.
