China's iron ore imports fall 5% in Jan on weak demand

China's January iron ore imports fell 5% from December due to shrinking demand and steel mill production cuts, market sources told MB.

China imported 32.65 million tonnes of iron ore in January, down 11% year-on-year, according to preliminary customs data.The drop in imports was expected. Last month, market participants said imports would fall given the Chinese New Year holidays and sufficient inventory at steel plants.

Spot iron ore prices in December had risen from November but were not expected to be sustainable so Chinese buyers were cautious about placing orders, which also contributed to lower January imports, said an iron ore trader in Henan province.There was also abundant inventory at steel mills and ports, he said.