China achieved a record-high in iron ore imports for the year 2023, reflecting a 6.6% increase compared to the previous year, as reported by customs data on Friday. The General Administration of Customs in China disclosed that the total iron ore imports for the year amounted to approximately 1.18 billion metric tons.
This milestone marked the first rise since 2020, as China had implemented an annual cap on steel output in 2021 and 2022 to mitigate carbon emissions, resulting in decreased demand for the crucial steelmaking component during those years. In 2021 and 2022, China’s iron ore imports experienced year-on-year declines of 3.9% and 1.5%, respectively.
In 2023, no caps were imposed on steel output, contributing to the surge in demand for iron ore. The absence of output restrictions was attributed to China’s economic challenges in recovering from the post-Covid era, exacerbated by debt issues in the property sector. Official data revealed that crude steel output in the first 11 months of 2023 increased by 1.5% compared to the same period the previous year, reaching 952.14 million tons.
While December saw a slight decline in iron ore imports to 100.86 million tons, down 1.83% from November, the volume still surpassed the 90.86 million tons imported in December 2022. This decline was attributed to maintenance activities in blast furnaces as steel profit margins contracted.
In terms of steel trade, China’s steel product exports in December 2023 surged by 43.2% compared to the previous year, reaching 7.73 million tons. The annual total for steel product shipments reached a seven-year high of 90.26 million tons, representing a substantial 36.2% increase, surpassing market expectations. Additionally, China imported 665,000 tons of steel products in December 2023, bringing the total for the year to 7.65 million tons, reflecting a 27.6% decline from 2022.
