Freight News, Logistics, Sea

China’s Iron Ore Imports Rise as Mining Weakens

[ August 13, 2026   //   Gary Burrows ]

China’s iron ore mining fell 7 percent year over year during the first half of 2026 as net imports increased 6 percent and steel production weakened, according to BIMCO.

Net imports accounted for 57 percent of China’s iron ore supply, up from 50 percent in the first half of 2022.

“The country is increasingly sourcing its iron ore from abroad because it is often of higher grade and competitively priced,” BIMCO Shipping Analysis Manager Filipe Gouveia said.

China’s total iron ore supply increased slightly during the first half, but demand from steel mills weakened. Overall steel production declined 3 percent year over year, while production from basic oxygen furnaces, which account for most iron ore consumption, is estimated to have fallen approximately 4 percent.

Iron ore inventories at Chinese ports consequently remained elevated throughout the period.

Demand for dry bulk ships carrying Chinese iron ore imports increased 9 percent year over year during the first six months of 2026, reflecting higher cargo volumes and longer average sailing distances.

The additional demand strengthened the dry bulk market, particularly the capesize segment, and helped support a 79 percent year-over-year increase in S&P Global Energy’s Platts Capesize T4 Index, which is based on four major capesize routes.

“China’s iron ore imports account for 24 percent of global dry bulk ship demand and 59 percent of capesize ship demand, making it the world’s largest dry bulk importer,” Gouveia said.

Chinese imports of Australian iron ore increased 4 percent, while imports from Brazil rose 6 percent. The two countries together supplied 83 percent of China’s iron ore imports.

Shipments from smaller exporters including Guinea, Liberia and Peru also increased significantly. Those trades involve longer-than-average sailing distances to China, adding to vessel demand.

Guinea’s Simandou mining project began exporting iron ore at the end of 2025. Volumes are expected to reach approximately 20 million tonnes this year, with most destined for China, and could increase to 120 million tonnes by the end of the decade.

ArcelorMittal is targeting a 15 million-tonne increase in Liberian iron ore exports during 2026. Peruvian exports strengthened during the second quarter compared with a year earlier, when port-handling disruptions constrained shipments.

BIMCO said China’s iron ore supply could weaken year over year during the second half of 2026, although the comparison will be against a strong second half of 2025.

Inventory building supported imports during the year-earlier period but is unlikely to be repeated because port stocks remain high. Steel production could also remain weak amid sluggish demand from China’s property sector, although automotive demand for flat-steel products could prove more resilient.

“Consequently, the strength of iron ore shipments could depend on imports remaining competitive against domestic mining,” Gouveia said.

Tags: BIMCO