China Insights: Iron Ore Mining Cools, Steel Making Softens

"In the first half of 2026, Chinese iron ore mining fell by 7% y/y due to a 6% y/y increase in iron ore net imports and weaker steel production. The country is increasingly sourcing its iron ore from abroad because it is often of higher grade and competitively priced. Iron ore net imports now account for 57% of China’s iron ore supply compared to 50% in the first half of 2022,” says Filipe Gouveia, Shipping Analysis Manager at BIMCO.

While China’s iron ore supply slightly increased in the first half of 2026, demand from steel mills weakened. Chinese steel production decreased 3% y/y while steel production from Basic Oxygen Furnaces, which accounts for most iron ore consumption, is estimated to have fallen by around 4% y/y. Consequently, iron ore inventories in Chinese ports remained elevated during the first half of the year.

“Demand for dry bulk ships transporting Chinese iron ore imports rose 9% y/y in the first six months of 2026 due to the rise in cargo volumes and an increase in average sailing distances. The developments strengthened the dry bulk market, especially the capesize segment, and added support to a 79% y/y increase in S&P Global Energy’s Platts