keywords :
Promulgated by the General Administration of customs statistics data, in December 2012, China's iron ore imports reached to 70,940,000 tons, with an increase of more than 10% over the same period last year, and 5,160,000 tons higher than that of November 2012, which hits a single month record for imports. According to the statistics, the average price of imported iron ore in December 2012 is 114 USD /MT, compared with November 2011, up 3.66% month-on-month.
From Mining-Bulletin Industry statistics, plus the first 11 months of iron ore imports in 2012, China's iron ore imports reached 743,600,000 tons, also hit a new record.
The steel traders told that where is demand there is market. The iron ore transaction is very active in December in 2012. And the steel mills also restored more stocks on hand which is a big force for the iron ore market.
The Mining-Bulletin Senior researcher also told the Reporter:’ For in the first half of 2012, the steel mills are cautious to purchase, the steel mills did not keep much iron ore stocks on hand. And the crude steel output is at high levels in the 4th quarter in 2012. So the steel mills would like to need more iron ore in recent months. The steel mills demand also driven up the fast increase of iron ore import.’
In January 2013, the ports iron ore stocks is about 74,740,000mt in China, while in July 2012 it is more than 98,000,000mt.
The steel mills are urgent to purchase iron ore for their stocks are only used for 3-5 days. For a steel mill, if the iron ore stocks can only maintain 7-14 days production, the operation risk will come out any time.
And the rising iron ore price is also a big risk for steel mills. The iron ore price of 63.5% is over 160USD/mt now. If the steel mills purchase the iron ore by the present prices, most of them will face profit loss. According to Mining-Bulletin, Chinese steel mills profits may be at 2% in 2012.
(Reported by Mining-Bulletin)