UPDATE 1-China's April iron ore imports second highest on record

miércoles 7 de mayo de 2014 23:29 GYT

* April imports 83.39 mln tonnes, up 12.75 pct on month

* Expectations of rising steel demand, financing needs drive rise

* Top Australian, Brazilian suppliers increase shipments to China (Adds detail, background)

BEIJING, May 8 (Reuters) - China imported 83.39 million tonnes of iron ore in April, the second highest monthly figure on record and up 12.75 percent from March, driven by seasonal demand from Chinese steel mills for the raw material.

The increase came despite weaker iron ore prices, amid concerns that growth in Chinese demand will not be sufficient to meet increases in shipments from major global mining firms.

Iron ore imports in the first four months of 2014 were 305.3 million tonnes, up 21 percent on the year, data from the customs authority also showed on Thursday.

The April rise was driven by high production rates at Chinese steel mills over the month, caused by a pick-up in seasonal demand, although slower-than-expected growth had dragged rebar prices down by 3 percent in April, the fifth consecutive monthly loss.

"People from steel mills and iron ore traders are hoping that second-quarter demand will increase and that steel prices will recover, and then iron ore prices will recover," said Xu Zhongbo, chief executive of Beijing Metal Consulting.

But he said some of the additional import demand was also driven by financing needs, with traders and steel mills still looking for ways to gain access to cash amid a government-driven crackdown on credit.   Continuación...