In the first quarter, the import price of iron ore imports increased significantly

Yesterday, the reporter learned from the General Administration of Customs that in the first quarter, China imported 177.17 million tons of iron ore and spent US$27.748 billion. Calculated as such, the import price of iron ore reached US$156.6/ton, a record high.

According to customs statistics, China’s imports of iron ore in the first quarter cost US$27.748 billion, an increase of 82.5% year-on-year. In particular, during the month of March, the average price of imported iron ore in China was 160.71 U.S. dollars per ton, which was 1.41% more than in February, and a year-on-year increase of 58.35%.

Despite the high prices, China's iron ore imports rebounded again. In March 2011, the import volume of iron ore in China was 59.48 million tons, which was basically the same as that of the same period of last year, but it increased by more than 10 million tons compared with February. China's iron ore imports hit a historical record of 68.97 million tons in January, and February imports fell to 48.64 million tons, but rebounded again in March.

Last year, China’s iron ore imports fell for the first time, and the dramatic increase in iron ore imports from China in 10 years has ended. Why did the imported iron ore rebound in the first quarter of this year? Hu Kai, an iron ore industry analyst at Union Metals, analyzed that due to the reduction of iron ore production in China's domestic mines, especially in the Northeast China, the steel mills turned to buy imported ore; with the increase in domestic mines starting in April, China imported iron ore. There will be highs and lows in the year.

While China’s imports of iron ore have increased substantially, China’s iron ore port inventories have continued to decline, and have been reduced by 500,000 tons per week for several weeks, from the previous 90 million tons to about 85 million tons by the end of March. This means that these iron ores are indeed consumed by steel mills.