Key Highlights:
- China imports hit 210 million tons (+10% YoY) in early 2026
- Port inventories surged to a record 166.9 million tons
- Steel production declined 3.6%, signaling a stockpiling strategy
- China controls nearly 75% of global seaborne iron ore demand
- Lower prices and geopolitical risks are driving bulk purchases
China is rapidly building iron ore reserves, with imports reaching 210.02 million metric tons in the first two months of 2026—up 10% year-on-year, according to customs data.
However, the surge is not driven by immediate industrial demand. Steel production during the same period actually declined by 3.6%, indicating that much of the imported ore is being directed into storage rather than consumption.
As a result, port inventories have climbed to a record 166.91 million tons by mid-March, reflecting a strategic buildup.
Analysts suggest China is taking advantage of softer iron ore prices—falling from around $108 to $98 per ton—while also preparing for potential supply disruptions linked to global geopolitical tensions.
