Nippon Steel not to import from overseas mills in bid to save US Steel deal
Nippon is looking to close its $14.9 billion deal for US Steel by the end of the year.
China’s iron ore imports bounced back in May as steel mills that were idled during the winter months as part of a government drive against pollution, hit output records.
Imports of high-grade iron ore fines and lump ore from Australia, Brazil and South Africa rose 13.5% from April to 94.14m tonnes. May 2017 imports totalled 91.52m tonnes. Cargoes for the first five months of 2018 now total 448m tonnes. Annual shipments for 2017 totalled just over 1 billion tonnes
Inventories at Chinese ports hit a record 162 million tonnes last week
Daily crude steel output by major steel mills hit a record 1.96 million tonnes in the first 20 days of May, according to data from China’s Iron & Steel Association.
The Metal Bulletin benchmark price at the port of Qingdao for 62% Fe ore gained on Friday to trade at $67.44 a tonne, down 7.5% year to date. The gap between 62% and 58% Fe fines widened to $28.38 per tonne on Friday while 66% Fe concentrate ended the week higher at $92.79.
The strong imports have caused growing stockpiles at Chinese ports which reached new peaks last week. Inventories hit a record 162 million tonnes according to SteelHome data.
China consumes more than two-thirds of the seaborne iron ore market and produces as much steel as the rest of the world combined.
