Iron ore imports to China have risen 6.8% in 1H24 compared to the same period in 2023, reaching 611.18 million t, up 35.05 million t from 1H23.
The rise in imports has not been used to make more steel for construction, but instead it has been used to rebuild inventories. Data from the consultant agency SteelHome has shown port stockpiles have risen 35.7 million t from the end of December 2023 to the two-year high of 150.2 million t in the week ending 12 July.
Copper
Copper imports also show a relationship to price, having increased when prices were modest and declined once more after they rose.
Imports of unwrought copper rose 6.8% in 1H24 to 2.763 million t, which seems a relatively strong performance.
It is worth noting that June’s imports were 436 000 t, down 15.2% from May’s 514 000 and the weakest since February.
The weak June imports came after global benchmark London copper prices climbed to a record high of US$11 104.50/t on 20 May.
The price spent the 1Q in a relatively narrow range anchored around US$8300/t before surging to the May high.
Coal
The final major commodity showing a correlation to prices was coal, with China’s imports rising a strong 12.5% in 1H to 249.57 million t.
While strong power demand and struggling domestic output have boosted import demand, it is worth noting that seaborne thermal coal prices have been trending weaker.
Indonesian coal with an energy content of 4200 kilocalories per kilogram, a grade popular with Chinese utilities, ended at US$52.70/t in the week ending 12 July, down 9.2% so far in 2024, according to assessments by commodity price reporting agency Argus.