Luo Bingsheng, executive vice president of the China Iron and Steel Association, said that China's dependence on foreign iron ore is declining, and the annual foreign dependency is expected to be about 60%. This is the first time that the dependence on iron ore in China has declined in recent years.
Luo Bingsheng disclosed the news at the Bohai Iron and Steel Market Forum and Lange Steel's 2010 annual meeting. The reporter learned that as of October, China's iron ore import volume has been declining for 7 consecutive months year-on-year, and imported iron ore has fallen by 2.2% year-on-year from January to October. The proportion of imported ore used has dropped from 70% in 2009 to the current level. About 60%.
This change has not been unrelated to changes in the price mechanism of Brazil's Vale, Australia’s Rio Tinto, BHP Billiton Big Three’s iron ore prices, and rising prices.
Since 2010, the Big Three have adopted quarterly pricing methods that are closer to the spot price of iron ore. As a result, prices of iron ore in Brazil and Australia have surpassed the average price of iron ore in India in the second half of this year. In the past few years, iron ore prices in Brazil and Australia have always been lower than Indian iron ore prices.
Against this background, China has actively broken through the plight of imported iron ore, and has produced a large number of self-produced iron ore, which has become one of the major supports for China's steel demand. From January to October, domestic iron ore totaled 8.7094 million tons, a year-on-year increase of 24.4%.
In addition, Chinese enterprises are actively investing in mines overseas. At present, China's iron ore rights and interests include approximately 192 million tons of already-built and under construction, accounting for 30.5% of China's total imports, but the proportion of equity mines is still relatively low.
Luo Bing also introduced that following the goal of coal and ten non-ferrous metals for total control, during the “12th Five-Year Plan†period, the steel industry must implement total steel production control and continue to eliminate backward and low-level production capacity. According to Luo Bingsheng, the current overall production capacity of the entire industry has been surplus, and the proportion of low-level production is too high. According to the statistics of the annual report of the Iron and Steel Industry Association, at the end of 2009, China’s steel industry’s steel production capacity was 718 million tons, iron production capacity was 636 million tons, and miscellaneous steel production capacity was 850 million tons. Among them, the proportion of backward and low-level production capacity was too high. About 40%.
Cai Jin, vice president of the China Federation of Logistics and Purchasing, predicts that the peak of consumption in China's steel market is only 700-800 million tons. This peak is likely to be reached during the "12th Five-Year Plan" period.
Luo Bingsheng disclosed the news at the Bohai Iron and Steel Market Forum and Lange Steel's 2010 annual meeting. The reporter learned that as of October, China's iron ore import volume has been declining for 7 consecutive months year-on-year, and imported iron ore has fallen by 2.2% year-on-year from January to October. The proportion of imported ore used has dropped from 70% in 2009 to the current level. About 60%.
This change has not been unrelated to changes in the price mechanism of Brazil's Vale, Australia’s Rio Tinto, BHP Billiton Big Three’s iron ore prices, and rising prices.
Since 2010, the Big Three have adopted quarterly pricing methods that are closer to the spot price of iron ore. As a result, prices of iron ore in Brazil and Australia have surpassed the average price of iron ore in India in the second half of this year. In the past few years, iron ore prices in Brazil and Australia have always been lower than Indian iron ore prices.
Against this background, China has actively broken through the plight of imported iron ore, and has produced a large number of self-produced iron ore, which has become one of the major supports for China's steel demand. From January to October, domestic iron ore totaled 8.7094 million tons, a year-on-year increase of 24.4%.
In addition, Chinese enterprises are actively investing in mines overseas. At present, China's iron ore rights and interests include approximately 192 million tons of already-built and under construction, accounting for 30.5% of China's total imports, but the proportion of equity mines is still relatively low.
Luo Bing also introduced that following the goal of coal and ten non-ferrous metals for total control, during the “12th Five-Year Plan†period, the steel industry must implement total steel production control and continue to eliminate backward and low-level production capacity. According to Luo Bingsheng, the current overall production capacity of the entire industry has been surplus, and the proportion of low-level production is too high. According to the statistics of the annual report of the Iron and Steel Industry Association, at the end of 2009, China’s steel industry’s steel production capacity was 718 million tons, iron production capacity was 636 million tons, and miscellaneous steel production capacity was 850 million tons. Among them, the proportion of backward and low-level production capacity was too high. About 40%.
Cai Jin, vice president of the China Federation of Logistics and Purchasing, predicts that the peak of consumption in China's steel market is only 700-800 million tons. This peak is likely to be reached during the "12th Five-Year Plan" period.