China imported 90.5 million mt of iron ore in February, the lowest volume in five months, slipping 0.55% month on month, latest data from the General Administration of Customs showed. It imported 51.5 million mt of iron ore from Australia in February, a 4.36% month on-month slide, but imports from other producers like Brazil and India recorded an increase.
The growth in China's iron ore imports on a year-on-year basis remains resilient, with total imports over January-February rising 2.67% year on year. GAC had only provided combined January and February data in 2020.
The cyclone season in Australia had exacerbated the supply crunch in the first two months of 2021, as total January-February imports from Australia slipped 1.41% year on year.
Iron ore imports from Brazil rebounded in February as weather related disruptions became less frequent, gaining 13.2% month on month in February to 21.7 million mt. In January, imports had declined 19.1% month on month and this was largely due to the monsoon season towards the end of 2020. Over January-February, imports from Brazil increased 13.3% year on year.
China imported 4.18 million mt of iron ore from India in February, rising 46% on the month, after a weak start to the year. In January, imports from India fell 24.7% month on month as strong domestic demand, coupled with tight supply, kept most of India's iron ore supply within the country.
China's pellet imports over January-February were lower on the year at a total of 3.78 million mt compared with 6.25 million mt over the same period in 2020. The rebound in demand outside China reduced supply to China and had propelled Platts assessed 64% Fe Pellet CFR China to stay above the $200/dmt mark for most of January and February. End-users in China sought other high grade alternatives as pellet usage lost its cost-competitive edge.
At that time, the highly anticipated Indian export tariffs, which had been expected to be implemented from Feb. 1, served to further weaken Indian pellet exports to China. The slight decline in pellet prices in February and India's decision to not implement the export tariffs during its Union Budget on Feb. 1, caused pellet exports to rebound strongly in February.
China's pellet imports from India more than doubled in February to 562,000 mt, outstripping the imports of China's key pellet exporters like Kazakhstan, Ukraine, and Brazil.
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