Half year review of the hottest iron ore in China

2022-08-01
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Half year review of iron ore in China: one kind of ore is very eye-catching

due to the strong trend of iron ore market in the second half of last year, especially the strong demand for medium and high-grade iron ore in China's market, miners are optimistic about the iron ore market this year. Especially in the first half of the year, the mainstream forecast trend of the market is first up and then down

from the actual trend, it enters the mode of first rising and then falling as set in advance. After the Spring Festival, the price of iron ore took the lead in rising. The index price rose to $95.05/t in late February, and the price of domestic mine relocation and installation rose to 660 yuan/T (66% acid powder wet basis does not include tax)

with the continuous deterioration of domestic supply and demand environment in the later stage, coupled with the pressure of environmental protection and the production increase of large foreign mines, the price fell rapidly. In the middle of June, the index price dropped to the lowest $54.55/t in the first half of the year, and domestic mines also dropped to the lowest $460/T in the first half of the year

from the overall performance of domestic iron ore concentrate powder, the market performance this year is relatively stable. There is no strong trend in the second half of last year, nor is there a decline as in previous years. The market fluctuates closely with the index. The miners' activity in the market is solid and smooth, but the trade circulation of the ore industry is still not very good

the data shows mixed feelings

from the perspective of domestic iron concentrate production, the statistical data this year are mostly higher than that of the same period last year, and the domestic iron concentrate supply has been relatively significantly increased. According to the statistics of the National Bureau of statistics, China's raw ore production in the first half of the year totaled 509 million tons, an increase of 37 million tons, or 10.4%, compared with the same period last year

according to the statistical data, the output of iron concentrate powder in the first half of this year was about 150million tons, which was also a narrow increase compared with last year's statistics. However, according to the monitoring of jinlianchuang, the problem of self-sufficiency rate of iron concentrate powder in China continues to worsen. In 2015, the self-sufficiency rate of iron concentrate powder in China's assets was 30%, 27% last year, and only 26% in the first half of this year. That is to say, in China's market, imported ores accounted for 74% of China's iron ore market resources

the real reason is naturally the substantial increase in production of large international mines this year. However, unlike the situation of supply structural imbalance in the imported ore market in the second half of last year, the supply of medium and high-grade mines was sufficient in the first half of this year, and the port inventory also hit a record high

the market performance of pellets is eye-catching

however, some iron ores also have local boiling in water bath. There is a shortage of ore resources, that is, pellets

from the perspective of the whole pellet Market in China, this year's pellet market has performed very well. However, China's domestic pellet plants have been severely restricted by environmental protection. Many small and medium-sized pellet plants that failed to meet environmental protection standards were shut down in succession last year. Large pellet plants are also often faced with environmental protection inspections. In the first half of this year, China's steel plants had very good production profits. Steel plants have a strong demand for high-quality iron ore, including pellet ore, lump ore, medium and high-grade imported ore There is a good market for iron concentrate powder in China

under this environment, the supply capacity of China's pellets is obviously insufficient, which also gives great business opportunities to the imported pellet market. In the first half of the year, the import volume of pellets increased significantly, but in May, the supply of imported pellets fell sharply, making the pellet resources enter the status of order shortage of China's plastic extruder enterprises

a good general environment will support the annual market

on the whole, although the iron ore market rose first and then fell in the first half of the year, the trend did not fall below the bottom line, and the market gradually received very good support. For the prices in the second half of the year, we can be full of expectations. If the current supply and demand market maintains the current state, the overall demand in the second half of the year will also be guaranteed. The domestic iron concentrate powder market may be in a tepid state

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