BLIRC Released a Research Report on Iron Ore

The year 2006 and 2007 is a most complicated and changeful period for China’s steel industry. Frequent debut of macro-control policies, continuous upgrade of foreign trade friction, as well as the picking up of supply monopoly for international iron ore; have made the foreground of the development for the country’s steel industry more confusing.

In recent years, due to the rapid development of China’s steel industry, the demand for iron ore has increased sharply. Since domestic iron ore supply greatly lags the amount of demand increase, the country more and more depends on foreign iron ore. The increase of the demand for iron ore import of China has a great influence on global marine commerce of iron ore.

China’s iron ore import amount accounts for 46% of international iron ore marine business, and such figure will rise further. As a main country dealing in iron ore trading, however, it is not yet the dominant source of international iron ore price and marine market. The sharp increase of China’s iron ore marine trading, has promoted the great rise of international iron ore price and marine freight, which has then pushed the import cost of iron ore higher. The external environment that Chinese steel enterprises face is more and more austere.

In recent years, in order to fasten the adjustment of industrial structure , the country has been washing out the laggard capacity of production, driving the upgrade of steel industry and releasing the environmental and resource pressure, thus it is hard to keep the complexion that steel enterprises are now depending on export to fasten development. A series of export tariff change were introduced, and the development of steel industry is showing a downward trend, which will directly influence the demand and market trend of iron ore market.

The report combines the latest international posture of supply and demand, the market status of international marine market, domestic macro policies and market data in and abroad, which makes an elaborate analysis and forecast on the focused problems about the iron ore supply and demand in and abroad as well as future development trend. Meanwhile, it also gives a systemic and all-sided explanation for the market environment, iron ore resource actuality, exploitation and development of mines, increasing circs of producing capacity in and abroad.