China’s May Iron Ore Imports Decline Amid Weak Seasonal Steel Demand

Iron Ore 

Seaborne cargoes face pressure as portside stockpiles drop to February lows

5.2% year-on-year import decline signals cautious buying patterns

China’s iron ore imports fell by 4.9% in May compared to April, landing at 98.13 million metric tons, according to the General Administration of Customs. The drop reflects steelmakers’ cautious procurement strategies amid expectations of weaker seasonal steel demand.

May’s import volume fell short of analyst forecasts of over 100 million tons and was also lower than the 103.14 million tons recorded in April and 102.03 million tons in May 2024. Mills have shifted their sourcing preferences to domestic ports, where iron ore inventory remained plentiful and portside cargoes were trading at lower prices than seaborne alternatives.

As a result, China’s portside iron ore inventory dropped 2.8% from the previous month, reaching 133 million tons by May 30. This level marks the lowest since February 2024, indicating robust off-take at port terminals despite the slowdown in seaborne flows.

Analysts attribute part of the May decline to customs clearance timing. Some vessels were processed earlier than usual due to the May Day holiday, which inflated April’s import figures and depressed May’s volumes. Steven Yu, senior analyst at Mysteel, noted that this shift in timing added noise to monthly comparisons.

In the broader context, China's iron ore imports totaled 486.41 million tons in the first five months of 2025—a 5.2% drop from the same period last year. The decline underscores the steel industry’s cautious stance amid subdued construction activity and softening manufacturing demand.

ScrapInsight Editorial Commentary

China’s steel sector is recalibrating iron ore purchases in line with tighter margins and seasonal patterns. While portside draws signal healthy domestic trade, the persistent decline in seaborne cargoes could weigh on global iron ore benchmarks. Market watchers should monitor steel output cuts and stimulus measures in Q3, which could quickly reverse current import trends.