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5 major changes in China’s iron ore market in 2017.      [2017-12-07]

According to CLIK’s analysts, 2017 witnesses 5 major changes in China’s iron ore market.
1. The increment in the supply of iron ore continues to narrow down. During Q1 to Q3, the cumulative iron ore production of four mining giants (Vale, Rio Tinto, BHP Billiton, FMG) is 856 mnt, an increase of 26 mnt, up by 3%, much lower than expected 55 million tons; the total shipment is 829 mnt with an increase of 10.2 mnt, up 1.3%, less than expected either.
2. The steady growth of the iron ore demand. During the first three quarters, the pig iron production worldwide is 892 mnt, an increase of 1.3% YoY to be 11.05 mnt. In Jan through Oct, China’s pig iron output is 603 mnt, an increase of 2.7% YoY, driving the increase in consumption of 41mnt with a 4.2% growth YoY.
3. The continuous tight supply of high grade iron ores. In the scenario of increasing proportion of large blast furnaces, energy saving, low carbon emission, environmental protection and improved efficiency of steel production, the rigid demand for high grade ores increases as coke prices remain high, while the structure of imported ores changes little. Iron ores below 60% grade account for 32%~33% and below 55% take up 6%, increasing 3% with the enlarging price gap between high and low grades. 
Five major changes in China’s iron ore market in 2017
4. The high growth in the imported iron ore. During Jan- Oct, China imported 896 mnt of iron ore, an increase of 53.06 mnt, up by 6.3% YoY. The annual total import is expected to reach 1.08 billion tons, up by 5.5% YoY, higher than the expected 4% in the beginning of this year.
5.The consistently rising port stocks. In mid November, the stock of imported iron ore is 138.15 mnt, an increase of 26.81mnt, up 24.1% over the same period.


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