Global iron ore prices ended up 5% last week as trade data for August showed another surge in imports to their highest level since the start of 2018.
While the Metal Bulletin’s index for 62% Fe fines, delivered to northern China fell 1.2% to $US1.13 a tonne to $89.05 a tonne on Friday, they were up 5% for the week from $US84.66 per tonne at the end of the previous week.
Prices fell 28% in August and it looks like Chinese steel mills took advantage of the falling price to load up on extra tonnage to rebuild stocks.
China’s August trade figures revealed that iron ore imports rose 4.2% to 94.85 million tonnes last month from July’s 91.02 million tonnes.
For the first eight months of 2019, China’s imports of iron ore totaled 684.9 million tonnes, down from 710 million tonnes in the same period last year.
Global prices closed July a $US117.15 a tonne.
Stocks of imported iron ore at Chinese ports rose to 125.25 million tonnes by the end of August, still well under previous highs.
Imports of unwrought copper, including anode, refined and semi-finished copper products fell 3.8% in August from the same month in 2018 to 404,000 tonnes.
In contrast, imports of copper concentrate, or partially processed copper ore jumped 9.3% to 1.815 million tonnes, but down from July’s record high of 2.07 million tonnes.
Imports of soybeans rose 3.6% to 9.48 million tonnes in August from 9.15 million tonnes in August 2018. August’s imports were up from 8.64% million tonnes and were, in fact, the highest in nearly 18 months.
Volumes though remain lower than they might have been because the amount of soybeans needed to feed China’s huge pig herds has been reduced by the continuing outbreak of African swine fever.
Meanwhile, China’s crude oil imports rose in August to 42.17 million tonnes, compared with 41.04 million tonnes in July, data from China’s General Administration of Customs.
August’s figure was up nearly 10% from 38.38 million tonnes in August last year.
Reuters said that equates to 9.93 million barrels per day (BPD), from 9.66 million BPD in July, and was the highest on a daily basis since April.
