China's iron ore imports next year are expected to hit the first time in a decade
2024-08-20 15:01:20
Since 2000, China's iron ore imports have continued to grow, but the continuous soaring prices have also made Chinese steel mills overwhelmed. Industry insiders said at the China Steel Market Outlook and "My Steel Network" annual meeting held here on the 19th that China's iron ore imports in 2010 are expected to peak in 10 years.
Statistics show that China's iron ore imports in 2000 were only 69 million tons, and by 2009 it has grown to 627 million tons. Along with the sharp increase in imports, the price of iron ore has risen rapidly. Luo Tiejun, deputy director of the raw materials department of the Ministry of Industry and Information Technology, pointed out that from 2005 to 2010, China's steel price index rose by 33%, while the price of the same period rose by 116%.
The high import mine price has made domestic steel mills somewhat discouraged. From January to November this year, China imported 560 million tons of iron ore, a slight decrease of 0.9% year-on-year. “The probability of iron ore imports this year being flat or falling is very high,†said Gao Bo, a senior researcher at China’s leading steel information agency “My Steel Networkâ€.
The decline in iron ore imports is related to the flexible strategy of Chinese steel mills to deal with high mineral prices. Zhao Xiangwu, chief researcher of Shenyin Wanguo Iron and Steel Industry, observed that in the third quarter, when the contracted ore price rose to the highest in the year, according to the calculation, most steel products would lose money, but the actual situation was better than expected. “Steel mills have learned to buy in the band: buy more when the mine price is low, and buy less when it is high. Like the import mine ratio in July, it is only 40%, and last year was 69%.†Some insiders pointed out.
After the tough 2010, what will happen to the iron ore market in 2011? "Because the three major mines have plans to increase production next year, and Japan and South Korea steel mills will reduce competition for supply after completing the replenishment of stocks, the tight supply situation of iron ore market will gradually ease, and the price may be at a high level and fluctuate downward. " Gao Bo said.
However, there are also many unfavorable factors. For example, the typhoon that may occur in Australia in the first quarter will affect shipments, and some countries such as India and Iran will increase tariff restrictions on iron ore exports. Therefore, even if the price of iron ore falls, the magnitude will not be too large.
The industry also expressed concern about the practice of some mining giants using "tendering" to push up the spot price of iron ore. In the "tendering" mode, steel mills competed for high prices, and traders followed suit. The iron ore market was in a situation where demand fell and prices rose. "The steel industry should unite to resist the proliferation of bidding models, and the government should also introduce measures to control vicious bidding." Industry insiders suggest.
Statistics show that China's iron ore imports in 2000 were only 69 million tons, and by 2009 it has grown to 627 million tons. Along with the sharp increase in imports, the price of iron ore has risen rapidly. Luo Tiejun, deputy director of the raw materials department of the Ministry of Industry and Information Technology, pointed out that from 2005 to 2010, China's steel price index rose by 33%, while the price of the same period rose by 116%.
The high import mine price has made domestic steel mills somewhat discouraged. From January to November this year, China imported 560 million tons of iron ore, a slight decrease of 0.9% year-on-year. “The probability of iron ore imports this year being flat or falling is very high,†said Gao Bo, a senior researcher at China’s leading steel information agency “My Steel Networkâ€.
The decline in iron ore imports is related to the flexible strategy of Chinese steel mills to deal with high mineral prices. Zhao Xiangwu, chief researcher of Shenyin Wanguo Iron and Steel Industry, observed that in the third quarter, when the contracted ore price rose to the highest in the year, according to the calculation, most steel products would lose money, but the actual situation was better than expected. “Steel mills have learned to buy in the band: buy more when the mine price is low, and buy less when it is high. Like the import mine ratio in July, it is only 40%, and last year was 69%.†Some insiders pointed out.
After the tough 2010, what will happen to the iron ore market in 2011? "Because the three major mines have plans to increase production next year, and Japan and South Korea steel mills will reduce competition for supply after completing the replenishment of stocks, the tight supply situation of iron ore market will gradually ease, and the price may be at a high level and fluctuate downward. " Gao Bo said.
However, there are also many unfavorable factors. For example, the typhoon that may occur in Australia in the first quarter will affect shipments, and some countries such as India and Iran will increase tariff restrictions on iron ore exports. Therefore, even if the price of iron ore falls, the magnitude will not be too large.
The industry also expressed concern about the practice of some mining giants using "tendering" to push up the spot price of iron ore. In the "tendering" mode, steel mills competed for high prices, and traders followed suit. The iron ore market was in a situation where demand fell and prices rose. "The steel industry should unite to resist the proliferation of bidding models, and the government should also introduce measures to control vicious bidding." Industry insiders suggest.
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