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China's iron ore imports rose 2.7% in September from August, reaching 104.13 million tons, driven by lower prices and anticipation of higher demand in the construction season. The imports also climbed 2.9% year-on-year, with average prices below $100 per ton due to declining domestic output and high portside stocks. Meanwhile, steel exports soared 25.93% year-on-year to 10.15 million tons, the highest since July 2016, thanks to better export market profitability. Steel imports were up 8.84% from August but fell 13.44% from last year. Year-to-date figures show a 4.9% increase in iron ore imports and a 21.2% rise in steel exports.

Key Highlights

* September's iron ore imports rose 2.7% from August, reaching 104.13 million tons.

* Lower prices and high demand expectations drove the import increase.

* Steel exports surged 25.93% year-on-year to 10.15 million tons.

* Year-to-date iron ore imports increased 4.9%, while steel exports grew 21.2%.

* Steel imports rose 8.84% from August but declined 13.44% from the previous year.

In September, China imported 104.13 million tons of iron ore, marking a 2.7% increase from August and a 2.9% rise year-on-year. This surge in imports surpassed analysts' expectations, which ranged from 98 to 103 million tons. Lower iron ore prices, averaging below $100 per ton in August and September, fueled the demand for imported ore, as mills took advantage of cheaper seaborne cargoes. Falling domestic production, which dropped 9.4% to 22.25 million tons in August, further encouraged imports.

Supporting this increase was a combination of declining domestic demand and high portside stocks, which drove prices down and incentivized overseas bookings. Additionally, China's ongoing construction season spurred optimism for improved steel demand, prompting higher iron ore purchases.

On the steel front, China's exports surged 25.93% from the previous year, reaching 10.15 million tons in September, the highest monthly total since July 2016. This significant rise was attributed to better profitability in export markets compared to domestic markets. Year-to-date, steel exports rose 21.2% to 80.71 million tons, while imports climbed 8.84% from August but decreased 13.44% from the previous year, reflecting a 9% drop for the first nine months of 2024.

Finally

China's iron ore and steel trade witnessed robust growth in September, driven by lower prices, export profitability, and construction season demand.

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