Iron Ore Imports Dropped for China in August

China’s imports of Iron ore dropped this August compared to the previous month, Reuters reported. The decline was due to a slump in demand and growing supply.

As quoted in the publication:

August iron ore imports declined just over 9 percent from the previous month to hit a two-month low of 74.88 million tonnes, as weakening steel demand has clashed with a flood of supply.

Even though iron ore prices .IO62-CNI=SI are near a five-year low after dropping nearly 38 percent this year, its demand outlook remains murky as major Chinese steel mills have started slashing output to cope with swollen inventories and poor sales.

Mark Pervan, head of research at ANZ Banking Group, told Reuters:

Chinese steel mills, coming off the leaner construction season, tend to be slower in the seaborne market. This year, you’ve probably got the additional motivation of steel mills trying to continue to keep prices low, so they’re really trying to stay away from the seaborne market to keep prices from recovering.

Click here to read the full Reuters article.