BEIJING:China’s iron ore imports hit a fresh record in 2014, jumping 13.8 percent to 932.5 million tonnes, as lower cost shipments from global miners flooded into the world’s top consumer.
In December, iron ore shipments jumped 29 percent from the previous month to a record 86.85 million tonnes, according to data from the General Administration of Customs, as steel mills replenished stockpiles in the winter season.
With big iron ore miners sticking to their expansion plans, increasing supplies have slashed prices for the steel making raw material at a time when easing economic growth in China is leading to slower demand growth for commodities.
Tumbling prices have forced some high-cost Chinese miners to shut down and encouraged Chinese steel mills to increase imports, analysts say, likely leading to further rises in imports.Lower-cost iron ore resources overseas have led to surging imports and squeezed higher-cost domestic iron ore miners to shut down, and this trend will continue this year,” said Li Wenjing, an analyst with Industrial Futures in Shanghai.Benchmark 62 percent grade iron ore for immediate delivery to China’s Tianjin port .IO62-CNI=SI fell 47 percent last year to below $70 a tonne, the lowest level since June, 2009, according to The Steel Index.
