Iron ore imports across China saw this year's biggest increase in July with an estimated 56.5 million tons of imported iron ore being received and unloaded at China's ports, up 35 percent year-on-year and 10 percentage points month-on-month, according to a notice issued by the Ministry of Transport on its website on August 4. The volume of iron ore imported in July is the second highest monthly level recorded this year, after 570 million tons in April.
It was reported on August 4 that the China Iron and Steel Association (CISA) has issued a statement announcing the suspension of iron ore negotiations with mining giants including Anglo-Australian firm Rio Tinto and Australian firm BHP Billiton. In response, an official from CISA clarified that CISA has not issued a statement and the negotiations are still underway.
Ministry of Transport statistics were calculated mainly according to the volume of received and unloaded iron ore at ports. The figures have small variations with customs statistics due to differences in the time of the declaration. However, the fact that iron ore imports surged in July is incontestable.
High stock levels have not stimulated a price fall in the iron ore market however. In contrast, the price of iron ore continued to rise on August 4. Indian powder iron ore (of 65.3 percent tenor) at Tianjin port was priced at 820 yuan per ton, up 20 yuan over the previous day. The price of this type of iron ore has risen every day since last week and the majority of domestic steel mills have again increased purchase prices of domestically-produced iron ore.
Australian mining giant BHP Billiton has concluded a deal to purchase 10 "Capesize" vessels over the past week after a period of quiescence. A queue of ships belonging to Japanese and South Korean steel plants can be seen waiting to load iron ore from Brazilian mining giant CVRD in ports such as Tubarao, indicating the high frequency of the steel plants' deliveries of large quantities of iron ore.
By People's Daily Online