| China’s Iron Ore Imports Fell in February – Impacted Iron Ore Stocks | |
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Iron Ore Outlook: Prices Remain Lower for Longer (Part 9 of 20) (Continued from Part 8) China iron ore imports
Chinese customs data tracks the country’s iron ore imports. Tracking the data is important for investors. It gives a good sense of the appetite for imported ore among Chinese mills and traders. Chinese mills and traders consume about two-thirds of seaborne iron ore.
In turn, this information impacts Rio Tinto (RIO), BHP Billiton (BHP), Vale SA (VALE), Cliffs Natural Resources (CLF), and other iron ore players involved in seaborne trade.
The iShares MSCI Global Metals & Mining Producers ETF (PICK) invests in iron ore. So, the data affects it equally. BHP Billiton is PICK’s top holding. It forms 18.5% of the ETF. The SPDR S&P Metals & Mining ETF (XME) also invests in some of these stocks.
For February, Chinese iron ore imports came in at 67.9 million tons—compared to January’s 78.6 million tons and December’s 86.9 million tons. This is a decline of 13.6% month-over-month. However, YoY (year-over-year) imports increased by 10.9%. This is the second straight month of decline for China’s iron ore imports. The major reason for the decline is weak steel demand. It’s mainly tied to the Chinese construction sector.
China’s government cracked down on polluting steel mills. This is also one of the factors that’s leading to muted growth in the sector.
Glut situation continues
While there’s still an oversupply of iron ore in the system, sustained closures by high-cost mines in China and elsewhere can help revive the situation and save the day for miners.
Continue to Part 10 Browse this series on Market Realist:
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Vale Inco est une société de production minière de nickel et de cuivre basée au Bresil. Vale Inco est productrice de nickel, de cuivre, d'or, de palladium et de platine au Canada, et détient divers projets d'exploration au Bresil, au Canada, au Perou, en Australie, en Indonesie, en Nouvelle-Caledonie et en Turquie. Ses principaux projets en production sont MCCREEDY WEST MINE et VICTORIA - INCO au Canada et ses principaux projets en exploration sont EAGLE CREEK, MEL PROJECT, B20, SHEBANDOWAN - BAND-ORE et GARSON MINE au Canada et BIG FOUR HERON - GOONGARRIE, GOONGARRIE HILL - GOONGARRIE, GOONGARRIE SOUTH - GOONGARRIE, HIGHWAY - GOONGARRIE, SCOTIA - GOONGARRIE, BORDER DOWNS et TOBY PROPERTY en Australie. |