In August 2015, the number of iron ore import licenses issued was 108.0817 million tons, down 0.43% month-on-month. The total value amounted to 6.174 billion U.S. dollars, with an average price of 57.12 U.S. dollars per ton. The volume cleared through customs was 37.3061 million tons, valued at 2.120 billion U.S. dollars; the average sea freight rate was 15.83 U.S. dollars per ton, up 1.48 U.S. dollars per ton from the previous month. From January to August, the cumulative number of licenses issued reached 841.1290 million tons, with a total value of 52.260 billion U.S. dollars and an average price of 62.13 U.S. dollars per ton. The cumulative volume cleared through customs totaled 562.5065 million tons, valued at 35.110 billion U.S. dollars; the average sea freight rate was 14.26 U.S. dollars per ton. The following is the situation regarding China's iron ore imports in August:

I. Import volumes and prices of iron ore by country of origin

In August 2015, the number of import licenses issued for goods from Australia totaled 71.4083 million tons, an increase of 5.51% month-on-month. The total value amounted to 4.006 billion U.S. dollars, with an average import price of 56.10 U.S. dollars per ton. The volume of goods cleared through customs was 26.2032 million tons, valued at 1.436 billion U.S. dollars. From January to August, the cumulative number of licenses issued reached 533.0585 million tons, with a total value of 32.301 billion U.S. dollars and an average import price of 60.60 U.S. dollars per ton. The volume of goods cleared through customs during this period totaled 363.2344 million tons, valued at 22.065 billion U.S. dollars.

The number of import licenses issued for goods from Brazil totaled 21.1434 million tons, down 11.81% month-on-month. The total value amounted to US$1.299 billion, with an average import unit price of US$61.42 per ton. The volume of goods cleared through customs reached 5.5046 million tons, with a total value of US$339 million. From January to August, the cumulative number of licenses issued was 169.4125 million tons, with a total value of US$11.166 billion and an average import unit price of US$65.91 per ton. The volume of goods cleared through customs during this period reached 107.0588 million tons, with a total value of US$6.989 billion.

The number of import licenses issued from South Africa reached 5.0045 million tons, an increase of 8.13% month-on-month. The total value amounted to US$307 million, with an average import price of US$61.32 per ton. The volume of goods cleared through customs was 2.5288 million tons, valued at US$170 million. From January to August, the cumulative number of licenses issued totaled 37.7721 million tons, with a total value of US$2.533 billion and an average import price of US$67.07 per ton. The volume of goods cleared through customs during this period reached 29.1370 million tons, valued at US$2.076 billion.

The number of import licenses issued from other countries totaled 2.5363 million tons, with a value of US$129 million and an average import unit price of US$50.88 per ton. The volume of goods cleared through customs was 827,200 tons, valued at US$50 million. From January to August, the cumulative number of licenses issued reached 27.1904 million tons, with a total value of US$1.462 billion and an average import unit price of US$53.76 per ton. The volume of goods cleared through customs during this period amounted to 16.3850 million tons, valued at US$914 million.

II. Dynamics of Import Enterprises

From January to August 2015, a total of 555 companies applied for automatic import licenses for iron ore, of which 493 companies have actually imported the goods.

III. Import Situation of Iron Ore Grades under Separate Contracts

In August 2015, the volume of import contracts from Australia totaled 59.9035 million tons. Among these, contracts with a grade of 66% or higher amounted to 167,900 tons, with an average price of US$60.34 per ton. From January to August, the cumulative contract volume reached 2.2998 million tons, with an average price of US$69.99 per ton; contracts with a grade between 63% and 66% totaled 3.2941 million tons, at an average price of US$62.53 per ton. From January to August, the cumulative contract volume was 42.1388 million tons, with an average price of US$71.93 per ton; contracts with a grade between 60% and 63% accounted for 3.29967 million tons, at an average price of US$58.11 per ton. From January to August, the cumulative contract volume reached 240.5109 million tons, with an average price of US$63.01 per ton; contracts with a grade between 55% and 60% totaled 2.31647 million tons, at an average price of US$51.59 per ton. From January to August, the cumulative contract volume was 207.9323 million tons, with an average price of US$53.13 per ton.

The volume of contracts imported from Brazil totaled 34.2091 million tons. Among these, contracts with a grade of 66% or higher amounted to 1.2109 million tons, with an average price of US$81.75 per ton. From January to August, the cumulative contract volume reached 9.6985 million tons, with an average price of US$87.55 per ton; contracts with a grade between 63% and 66% totaled 12.1687 million tons, at an average price of US$72.23 per ton. From January to August, the cumulative contract volume was 59.4114 million tons, with an average price of US$72.13 per ton; contracts with a grade between 60% and 63% accounted for 2.08294 million tons, at an average price of US$78.38 per ton. From January to August, the cumulative contract volume reached 9.29358 million tons, with an average price of US$66.90 per ton; no contracts were recorded for grades between 55% and 60%, with an average price of US$0 per ton; and the cumulative contract volume from January to August stood at 2.3904 million tons, with an average price of US$50.80 per ton.

IV. Ocean Freight for Imported Iron Ore

In August 2015, the average sea freight rate for iron ore imports was $15.83 per ton. Among these, Australia’s rate was $15.13 per ton; Brazil’s, $16.44 per ton; Mongolia’s, $27.88 per ton; South Africa’s, $18.59 per ton; Canada’s, $12.65 per ton; and Indonesia’s, $6.48 per ton.

From January to August, the average import sea freight rate was $14.26 per ton. Among these, Australia’s rate was $12.08 per ton; Brazil’s, $17.04 per ton; Ukraine’s, $18.70 per ton; South Africa’s, $16.07 per ton; Mongolia’s, $30.82 per ton; India’s, $25.67 per ton; and Indonesia’s, $7.57 per ton.

V. Market Conditions for Iron Ore Imports This Month

(1) Market Conditions

In August, the number of iron ore import licenses issued declined slightly by 0.43% month-on-month, while the total value fell by 6.16% month-on-month. The average price stood at USD 57.12 per ton, down USD 3.49 per ton from the previous month. This indicates that import demand remains robust, yet prices have clearly softened. In August, the average ocean freight rate for iron ore imports rose by USD 1.48 per ton month-on-month, reflecting an even greater decline in the average ex-ship price. As iron ore prices continue to remain low, production of high-cost, high-grade iron ore has decreased, leading to a reduction in imports of this type of ore. Meanwhile, mines that continue to operate are shifting toward producing lower-cost, lower-grade iron ore to maintain their market share, which has also contributed to the decline in import value. Among the import structure, Australia and Brazil remain China’s top two suppliers of iron ore; among imports from these two countries, the volume of low-grade iron ore increased month-on-month.

(2) Recommendations

According to the latest data from the National Bureau of Statistics, China’s crude steel production in August reached 66.94 million tons, an increase of 1.7% from the previous month. With the country’s macroeconomy essentially reaching a bottom in July, economic indicators for August have gradually stabilized and shown signs of improvement. As we move into September and October, the macroeconomy is expected to experience a rebound. For the steel industry, market demand is likely to pick up, leading to increased demand for iron ore. However, since iron ore shipments from Australia and Brazil will rise in the second half of the year compared to the first half, the remaining potential capacity for exit in the iron ore market is limited, meaning overall market supply is set to increase. If steel demand falls short of expectations, steel companies may ramp up production cuts, thereby reducing their demand for raw materials. Therefore, it is advisable for the market to procure according to actual needs. The iron ore market may experience fluctuations, so caution is advised to avoid sharp price swings. It is also crucial to closely monitor how fluctuations in crude oil prices affect shipping costs and other production expenses.