BEIJINGSINGAPORE Reuters Chinarsquos demand for iron ore pellets and high-quality ore is expected to accelerate in 2020 as a result of Beijingrsquos push to shift dozens of steel mills to coastal regions in its battle to stop smog blanketing industrial cities.
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Relocating plants to the coast, with stricter environmental requirements, means up to 20 of Chinarsquos more-than-a-billion-tonne annual ore demand will shift from lower- to higher-grade ores within coming years, according to industry sources and a Reuters analysis of official import and production statistics.
Steel executives say the demand shift in the top ore market will mean declining purchases of low-grade supplies and greater demand for pelletised ore of a higher grade with potentially major implications for ore exporters in Australia.
LdquoIron ore producers who can sell pellet-feed into China will be better placed than those who donrsquot have such products,rdquo said Ian Roper, general manager at Shanghai Metals Market, a Chinese metals market research company, ldquowith the major Australian lower-grade specialist suppliers facing the biggest challenge in the medium to longer term.rdquo.
GRAPHIC Chinas iron ore imports set for shake-up as mills upgrade move to the coast here.
Shanghai Surging iron prices have taken a hit from signs the Chinese government could act on complaints from Chinese steel mills that market manipulation by futures traders is squeezing their profit margins.
Iron ore futures, which hit a five-year high last week, fell almost 4 per cent late Friday after a top official representing Chinas powerful steel industry said Beijing was preparing to crackdown on soaring prices.
Dual-listed shares in Australian miners BHP Billiton and Rio Tinto fell sharply in London on news that Chinas top steelmakers had formed a working group to investigate irregularities. Analysts warned any move by the Chinese government to respond to the industry complaints would result in lower prices for imported iron ore, although a shortfall meant volumes were not threatened.
Higher iron ore exports pushed Australias trade surplus to a record 5.7 billion in May and exports to China during the month surged 18 per cent, data released last week showed. Chinas continued demand for Australian iron ore will be crucial to achieve the first current account surplus since the 1970s.
The price of iron ore hit a five-year high of more than US126 a tonne last week before falling on Friday to as low as US107 a tonne.
Qu Xiuli, vice president of the China Iron Steel Association CISA, told a conference in Shanghai on Friday that quotrelevant departmentquot in the Chinese government was investigating the price hikes in the first six months of the current year.
Jul 05, 2019nbsp018332Chinas powerful steelmakers are flexing their muscles as record iron ore prices eat into their margins and traders warn there will be consequences for Australian miners.
Her comments followed news thatChinese steelmakers, led by industry giant Baowu Steel, had set up a working group to find ways to tackle soaring prices.
A global shortage of iron ore has bolstered exports for BHP Billiton, Rio Tinto and Fortescue Metals, driving prices to five-year highs.
Brazilrsquos Vale SA VALE3.SA, the worldrsquos biggest iron ore miner, is also the top producer of pellets and pellet feed. LKAB in Sweden and Switzerland-based Ferrexpo FXPO.L are the second- and third-largest pellet producers.
Vale declined to comment for this article, but directed Reuters to its Aug. 1 quarterly earnings call, where it stated pellet production would be 45 million tonnes for 2019, down from 55 million tonnes in 2018 due to outages at some of its Brazilian operations. LKAB and Ferrexpo declined to comment.
Over a four-year campaign against pollution, as well as excess capacity in heavy industry, China has shut 700 small steel mills with 140 million tonnes of steel capacity deemed sub-standard, plus 150 million tonnes of inefficient capacity at larger firms.
Remaining mills will need to further cut emissions, and those located in the smog-prone eastern rust belt must move to designated steel parks along the coast, where fragile eco-systems mean environmental regulations are strict.
More than 50 Chinese steel companies pledged in 2018 to shut old capacity and build new furnaces with a combined yearly capacity of 60.29 million tonnes, according to a Reuters analysis of official industry data. Nearly 25 million tonnes of this new capacity is scheduled to come on line in 2020.
Aug 14, 2020nbsp018332Brazils Vale NYSEVALE has received board approval for a long-sought expansion of the already massive S11D iron ore mine, in the northern state of Par225 The 1.5 billion Serra Sul 120.
China iron ore beneficiation plantanticagelateriach. china iron ore beneficiation mantelzorgleiderdorp super beneficiation of iron ore in china vics2017 Iron ore beneficiation equipment TFG is a iron ore machine manufacturer in China, and supplies rock crushers and grinding mills for iron ore beneficiation plant The most commonly used crushers.
MANILA Reuters Spot iron ore prices held near one-month lows and were headed for their steepest weekly fall since early July, with the raw material failing to catch up with a recovery in other commodities amid weak steel prices in China.
May 21, 2020nbsp018332Miners and the federal government denied there was a serious threat to iron ore or coal exports to China. China this week announced changes to its inspection processes for iron ore imports.
Mills have been trying to push up steel prices but demand is really weak. Its difficult for them to sell their products unless they lower the price, said a Shanghai-based trader.
Some Chinese mills in the top producing province of Hebei have halted or limited production to clear skies ahead of a big military parade to commemorate the 70th anniversary of the end of World War Two in nearby Beijing, reducing demand for iron ore.
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