China’s iron ore imports, the biggest in the world, gained 1.2 percent to a nine-month high in December as mills restocked on expectations prices may rise.
Imports rose to 58.1 million metric tons in December, the highest since March, from 57.4 million tons in November, according to China’s General Administration of Customs. Still, purchases fell 1.4 percent to 618.6 million tons in 2010, the first yearly drop since 1998, data compiled by Bloomberg show.
Prices for 62 percent-iron ore arriving at Tianjin Port rose to $172.6 a metric ton as of Jan. 7, the highest since May 11, according to the Steel Index. Chinese steelmakers are also replenishing stockpiles before the weeklong Lunar New Year holiday, which starts Feb. 2, said UC361.com analyst Hu Kai.
“Everyone is buying, sending prices higher,” said Shanghai-based Hu. “Mills may also increase production as steel prices are increasing, too.”
Domestic prices for hot-rolled coil, a benchmark steel product, gained for six straight weeks to 4,669 yuan a ton on Jan. 7, the highest since April 26, according to researcher Beijing Antaike Information Development Co.
December imports were 6.6 percent lower than the 62.2 tons bought a year ago, according to data compiled by Bloomberg. The government’s measures to rein in steel production earlier this year, coupled with output expansion at domestic mines, curbed import demand.
China exported 2.85 million tons of steel products last month, the customs said. For 2010, exports gained 73 percent to 42.6 million tons.
To contact the reporter on this story: Helen Yuan in Shanghai at hyuan@bloomberg.net
No comments:
Post a Comment