SHANGHAI, Oct 24 (SMM) - According to the data from the General Administration of customs, China imported 99.71 million mt of iron ore and concentrate in September 2022, up 3.502 million mt on the month and 4.29% on the year. From January to September 2022, the iron ore and concentrate imports totalled 822.542 million mt, a year-on-year decrease of 19.023 milliom mt.
SMM believes that there are three main reasons for the increase in imports in September:
1. Amid the traditional peak season, the demand for finished products in September was strong. Therefore, the steel mills produced actively, and the demand for iron ore increased significantly.
2. Amid the approaching National Day holiday, the inventory of domestic steel mills was low, hence steel mills stocked up in advance.
3. Near the end of the quarter, in order to complete the tasks, some overseas mines increased their shipments.
In October, the peak season of terminal demand extends, but due to the impact of the National Day and the 20th National Congress of the Communist Party of China in October, some blast furnaces is north China have been shut down for maintenance amid the environmental protection-oriented production limits. The losses of steel mills expanded after the coke prices increased, and some steel mills planned to reduce the production, hence the demand for iron ore will decrease. In addition, the National Day holiday may also affect the import volume of iron ore. Imports of iron ore are expected to fall in October.
