China Dry Cargo Signals: May 2026

The Affinity China Dry Index reached 107.6 in May 2026, reflecting 13 per cent month-on-month growth and a 19 per cent increase year-on-year, buoyed by pre-holiday import and export activities and stronger steel production. However, declining consumer confidence poses challenges, impacting overall demand. Chinese iron ore imports rose by 3 per cent month-on-month and 6 per cent year-on-year amid significant stockpile expansions, while despite increased domestic production, coal imports fell 12.5 per cent year-on-year due to strong renewables and domestic supply. Additionally, bauxite imports declined monthly but remained elevated year-on-year, indicating broader sectoral shifts, as China's structural adjustments in steel production continue to evolve amid varying domestic demand dynamics.