China's iron ore imports rose 2.8% in the first two months of 2021 from a year earlier, data from the General Administration of Customs showed on Sunday, as a solid domestic consumption outlook underpinned demand for the steelmaking ingredient.
In January and February, China imported 181.5m tonnes of iron ore, up from 176.6m tonnes in the same period last year, according to the General Administration of Customs.
The increase was in the range of analysts' expectations as shipments from China's two largest suppliers rose steadily.
The number of ships from Australia and Brazil rose 11 per cent to 164m, according to Lufter ship tracking data.
China's demand for iron ore is likely to remain strong this year as crude steel production increases amid increased demand from downstream industries such as infrastructure construction and auto manufacturing, according to a senior metals and mining analyst at Bloomberg.
"Iron ore supplies from overseas miners will pick up in 2021 after the global iron ore market was previously short of demand due to disruptions in production and transport," he said.
"Iron ore is essential for steel production, which in turn is essential for maintaining a strong industrial base."
The China Iron and Steel Association has forecast a small increase in domestic steel demand this year, boosting sentiment in the ferrous metal sector.
But the Ministry of Industry and Information Technology has repeatedly urged companies to cut China's crude steel output this year to meet its goal of being carbon neutral by 2060.
It is not clear how the production cuts will be implemented, "Zhuo Guiqiu, industrial goods analyst at Jinrui Futures, said before the data was released.
"If crude steel production is really constrained...
Iron ore demand is likely to fall throughout the year."
China this year approved imports of high-grade scrap steel in accordance with new national standards, and major domestic steel producers are developing their metal scrap recycling businesses.
China exported 10.14 million tons of steel products in the first two months of this year, up 30 percent from 2020, according to customs statistics.
Imports of steel products rose 17.4 per cent to 2.4m tonnes.
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