China's iron ore imports hit record highs in 2017

Imports of Chinese iron ore fell 11 percent in December from the previous month, but shipments hit a record high in a full year, according to customs officials. The largest global consumer in the world bought more imported raw materials to increase steel output.

Imports in December amounted to about 84.3 million tons against 94.54 million tons in November. Full-year shipments rose 5 percent to a record 1.075 billion tonnes, surpassing 1 billion tonnes in its second year.

Chinese steel mills boosted production amid a strong rebound in steel prices, pushing profits to their highest levels in two decades.

“The five percent annual increase is meeting our expectations,” said Wang Di, an analyst at CRU in Beijing.

“Large miners expanded their production and supply, while China's pursuit of illegal furnaces using scrap metal for production in the first half of the year fueled demand for offshore iron ore. The appetite for imported iron ore from Chinese steel mills remains strong. ”

Demand for higher quality imported iron ore, mainly from Australia and Brazil, was driven in part by pollution control policies in China.

Chinese steel prices have nearly tripled from their lows at the end of 2015. Last year, prices rose 46%, while prices for Chinese iron ore rose 16%.

The demand for iron ore and steel production is expected to be 1.12 billion tonnes and 838 million tonnes in 2018, respectively, the China Metallurgical Planning and Research Institute said last month. Australia on Monday said it expects iron ore prices to average $ 51.50 per tonne this year, down 20% from 2017 due to increased global supply and lower demand from the outside. China's largest importer as its steel sector shrinks.