China imported record amounts of iron ore in 2024
Low prices meant China continued to import ore last year, but steel exports show demand flimsiness
The world’s biggest iron ore consumer broke its import record again in 2024, following 2023’s record-breaking year of 1.18bn tonnes
CHINA imported 1.24bn tonnes of iron ore in 2024, a new record for ore imports.
That’s according to data published by the country’s General Administration of Customs, which shows an increase of 5% on 2023’s 1.18bn tonnes, which was a record-breaking year in itself.
Low iron ore prices throughout 2024 drove increased iron ore imports, which were largely used to bolster port-side inventories, which have increased by more than 25m tonnes during 2024, according to data from the China Iron and Steel Association.
The price of the main iron ore futures contract on the Dalian Commodity Exchange decreased 35% from the two-year high seen on January 2, 2024 of Yuan1,016 ($138.58), to Yuan658.50 on September 23, 2024.
A stimulus package announced by Beijing in September saw prices increase, but they still remain far below the levels seen at the start of 2024, which suggests iron ore imports could remain strong into 2025.
Record iron ore imports usually spell good news for the dry bulk sector, but demand in China remains fragile. The real estate market continues to flag, shown by a level of steel exports not seen since 2015.
China exported 110.7 tonnes of steel in 2024, customs data shows, which is a 22% increase on 2023’s export figure.
BIMCO predicts Chinese steel demand to decrease 1% in 2025, and shipbroker Howe Robinson’s head of dry bulk research, Bilal Muftuoglu, told Lloyd’s List there “isn’t much suggesting housing demand is coming back”.
The stimulus package announced late last year was more geared towards supporting existing construction projects and local government, he said, rather than jump-starting the real estate market.
Chinese steel production is down 2.7% in 2024 so far, according to World Steel Association figures, though the deficit has been cut by a strong couple of months from the world’s biggest producer.
Record-breaking years of iron ore imports are welcome news for a segment that had a disappointing end to 2024.
But sky-high steel exports suggest that demand is not built on solid foundations.
