China’s iron ore imports dip in May amid strategic shifts

Iron ore imports into China experienced a notable downturn in May, falling short of market forecasts with a 4.9% decrease compared to the previous month of April. 

This decline reflects a cautious procurement strategy adopted by Chinese steel mills, who strategically reduced their acquisitions of seaborne iron ore shipments. 

The reduced purchasing activity stemmed from expectations of a forthcoming seasonal slowdown in domestic steel consumption, prompting mills to manage inventories more conservatively. 

Consequently, the import figures for May underscore a proactive measure by the steel industry to align with anticipated shifts in demand dynamics, signaling a responsive adjustment to potential market conditions.

Official data released on Monday by the General Administration of Customs revealed that last month, the nation consuming the most iron ore globally imported 98.13 million metric tons of this crucial steel production component.

Imports miss expectations

May’s iron ore volume fell short of the projected 100 million tons by analysts.

The reported volume also lower than April’s 103.14 million tons and the 102.03 million tons recorded in May 2024.

Several steel manufacturers and market experts attribute last month’s reduced import figures to a strategic shift, according to a Reuters report.

These producers opted to source materials from ports offering ample supplies and more competitive pricing.

Portside inventories declined by 2.8% month-over-month to 133 million tons as of May 30, marking the lowest point since February 2024, due to reduced import volumes.

May imports were lower than anticipated and April imports were higher than anticipated due to some vessels receiving early customs clearance around the May Day holiday, Steven Yu, a senior analyst at Mysteel consultancy told Reuters.

Chu Xinli, an analyst at broker China Futures was quoted in the report:

While May volume is lower than our expectations, it remained at a relatively high level thanks to restocking from mills amid falling portside inventory. 

China’s iron ore imports experienced a notable downturn in the initial five months of 2025. 

Specifically, from January through May, the nation imported a total of 486.41 million tons of iron ore. 

This figure represents a 5.2% decrease compared to the volume of iron ore imported during the corresponding period in 2024. 

Steel exports

May saw China’s steel product exports reach a seven-month peak of 10.58 million tons, marking the third consecutive month exceeding 10 million tons.

This figure represents a 1.15% increase from April and a 9.87% rise year-over-year.

Driven by anxieties about tariff increases diminishing demand, consistent front-run shipments are reportedly fueling export growth, according to analysts.

Through the first five months of the year, exports surged 8.9% compared to the same period last year, achieving a record high for that timeframe at 48.47 million tons.

China saw its steel imports drop significantly last month, declining 24.5% compared to the same period last year, totaling 481,000 tons. 

Over the initial five months of the year, imports decreased by 16.1% from the previous year, reaching 2.55 million tons in total, the data showed.

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