Iron ore imports to China rise 8 percent in February

In February 2016, China's imports of iron ore rose 8.3 percent to 73.61 million tons from a year earlier, according to customs data. During this period, major miners increased shipments of iron ore to gain a larger market share for the world's largest consumer of this raw material.

Imports also jumped 6.4 percent to 155.8 million tons in the first two months of the year, according to the General Administration of Customs. Global miners Vale, BHP Billiton and Rio Tinto have already boosted production, crowding out less profitable miners in China and elsewhere.

ANZ expert Daniel Hines said: “I think that the export market for iron ore will continue to increase its share in China, which means that even with a slight drop in steel prices, we expect import demand to remain strong.”

However, Hines said the recent rise in steel prices means some Chinese iron ore mines could resume production, potentially holding back imports this year.
Iron ore is up 46 percent this year to $ 62.60 per tonne, making it the top commodity to date in 2016.

Raw materials growth was supported by sentiment and expectations that Chinese demand for steel will rise on the back of Beijing's measures to stimulate the second world economy.

Steel exports from China rose 4 percent to 8.11 million tons in February from a year ago, but fell 16.7 percent from January. Exports in January-February decreased by 1.3 percent to 17.85 million tons.

The increase in anti-dumping measures against Chinese producers is aimed at Chinese steel producers to limit further increases in overseas sales, which reached a record 112 million tonnes in 2015.

China's iron ore imports are expected to decline in the long term, analysts said, as Beijing seeks to reduce crude steel capacity by 100 million to 150 million tonnes over the next five years, as well as ban the construction of new steel projects and liquidate so-called mills. " zombie".