IRON ore imports by China, the largest buyer of the steelmaking ingredient, rebounded 18 percent in September to a five-month high, indicating the State measures to curb steel production haven t damped ore demand.
Imports rose to 52.6 million tons, the highest since April, from 44.6 million tons in August, according to figures provided by the General Administration of Customs. The September purchases were 19 percent lower than 64.6 million tons a year ago, data compiled by Bloomberg showed.
The Chinese Government started limiting power to steelmakers in September, trimming supply in the world s biggest producer, as it rushed to meet energy consumption targets. Vale SA and Rio Tinto Group, the world s two biggest exporters of the raw material, said last month they haven t seen any big effect on demand from these measures.
Chinese steelmakers have been able to make profits since August, said Hu Kai, an analyst with researcher UC361.com. They are willing to keep their plants running, sustaining ore demand.
Chinese steel prices have risen 12 percent to 4,355 yuan (US$653) a ton from 3,888 yuan July 14, rebounding from a 17 percent drop that began in April, according to the Beijing Antaike Information Development Co.
China s iron ore imports dropped 13 percent in August, the biggest decline in seven months, to 44.6 million tons, the lowest level since February 2009.
Power restrictions on steel production may have a bigger effect on demand for the raw material in the fourth quarter, said Zhang Yong, an analyst with researcher Mysteel.com. Still, iron ore shipments to China may continue to rise this month as India resumed exports in mid-September after its rainy season ended, he said.
Sales from India s western state of Goa, which exports 38 percent of the country s iron ore, typically stop after seasonal rains start in late June. (SD-Agencies)
