According to reports, the price of iron ore recently returned to the $170 mark, with the Chinese market consumer demand.
As the social economy continues to rebound, China's iron ore imports remain at a strong level -- data released by the General Administration of Customs on March 7 shows that from January to February 2021, China imported 2.395 million tons of steel, an increase of 355,000 tons year-on-year or 17.4%;
The average import price was USD1,095.6 / ton, an increase of USD77.8 / ton year-on-year, an increase of 7.6%.
From January to February 2021, China imported 181.506 million tons of iron ore, an increase of 4.811 million tons year-on-year, an increase of 2.8%;
The average import price was USD144.5 / ton, an increase of USD52.2 / ton year-on-year, an increase of 56.6%.
Strong demand for iron ore is linked in turn to the "boom" in China's steel industry.
On the one hand, data released by the China Iron and Steel Association shows that thanks to a number of policies implemented after the epidemic to promote intra-industrial circulation, China's annual crude steel output in 2020 exceeded 1 billion tons for the first time.
Another data shows that China's steel consumption is expected to hit a record high of 981 million tons in 2020, an increase of nearly 100 million tons a year.
On the other hand, in the export demand is strong, steel production in Tangshan, a major steel production measures, the relevant departments will control the annual steel production and other factors, the recent steel prices have also started to rise.
The market data in mid-February showed that after the Spring Festival, most of the domestic steel varieties increased by more than 200 yuan/ton compared with before the festival, and the Tangshan billet price even rose by nearly 300 yuan for three consecutive days, hitting a record high in recent years.
Based on the above two points, some analysts point out that China's iron ore import demand may continue to increase in 2021, and iron ore prices will continue to be supported.
However, it needs to be noted that steel production limits, the relevant departments for the "carbon neutral" target to reduce crude steel production, while in the short term can provide support for steel prices, but in the long term, it is more likely that iron ore demand will fall.
Especially in the "recycled iron and steel raw materials" national standard through the examination, domestic manufacturers began to develop scrap steel recycling business, the probability of the occurrence of this event is higher.
Based on this, there are also voices that iron ore prices have been sustained high can not last long.
