• Jan-Feb iron ore imports at 209.45 mln T vs 194 mln T yr prior
• Steel products exports up 32.6% y/y in Jan-Feb
• Steel imports in Jan-Feb fall 8.1% y/y

BEIJING, March 7 (Reuters) - China's iron ore imports in the first two months of 2024 climbed 8.1% from the previous year as steelmakers restocked to meet production needs during and after the week-long Lunar New Year holiday.

The world's largest iron ore consumer brought in 209.45 million metric tons of the key steelmaking ingredient - a record high for the two-month period, customs data showed on Thursday.

The number works out to a monthly average of 104.73 million tons, versus a monthly average of 98.39 million tons in 2023.

That compares to 100.86 million tons imported in December.

China combines import data for January and February into one release to smooth out the impact of the Lunar New Year holidays, which fell in February this year.

Better-than-expected supply in a typically slow-shipment season and an extra day in February due to the leap year aided the annual rise in imports, analysts said.

Bookings in November and December for shipments that would arrive in January-February were robust as buyers were worried that iron ore prices which were rising at the time could climb further, analysts said.

Buyers also expected ore demand to pick up after the holiday break due to seasonally stronger steel consumption in spring.

The higher imports have contributed to a price slump and rising portside inventories in the January-February period, according to analysts.

Iron ore prices tumbled by 19% during the two months, while stocks at major ports climbed by more than 16% to 134.9 million tons by end-February, the highest since March 2023, data from consultancy Steelhome showed.

"If hot metal output continues to hover at relatively low levels in the coming months, iron ore imports may fall," said Xu Xiangchun, director of content at consultancy Mysteel, referring to the slower-than-expected recovery in ore demand after the Lunar New Year holiday.

China's exports of steel products grew 32.6% to 15.91 million tons in the first two months of the year versus the same period a year earlier, the highest level for the period since 2016, the data also showed.

China's imports of steel products dropped 8.1% to 1.13 million tons.

https://www.reuters.com/markets/commodities/china-jan-feb-iron-ore-imports-jump-pre-holiday-restocking-higher-shipments-2024-03-07/