China imports over 100 million tons of iron ore

Iron ore imports to China rose to a record high in September. In addition, the country's drive to clean up the environment has fueled demand for higher quality materials from overseas, exacerbating the plight of local mines. Prices have increased.

According to customs officials, purchases of iron ore in September rose to 102.8 million tons from 93 million tons per year, surpassing the previous record of 96.3 million tons in December 2015. In the first nine months, imports increased by 7.1 percent to 817 million tons.

High quality ore is definitely gaining popularity. Seasonally, September is a strong month for imports as plants tend to stock up until winter. However, purchases will decline significantly in October as steelmakers cut production.

China plans to cut steel and aluminum production this winter, potentially cutting supplies. This means factories and smelters will leave more of their products at home. In September, steel exports fell to 5.14 million tonnes, the lowest since 2014, while aluminum cargo fell to 370,000 tonnes, a seven-month low.

The unprecedented figure of iron ore imports has provided a rise in prices. Cutting production in China will reduce overall demand. Futures in Singapore rose by as much as 6.2 percent on Friday to $ 62.20 a tonne. The estimated spot price of 62 percent iron ore in Qingdao rose 4.1 percent to $ 62.53 per tonne.