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15th Steel Development Strategy Conference, host by
SteelHome, was successfully held in International Convention
Center during April 12-14, 2019. Around 1000 delegates from
governments, associations, steel mills, miners, traders,
research institutes attended the one of biggest events in China
steel industry.
8th International Raw Materials Supply Chain Summit,
9th Coal & Coke Development Strategy Conference, 7th China
Commodities E-Commerce Summit and 2019 SteelHome Spring Report
were simultaneously held.
On the morning of April 14, Lei Pingxi, Chief Engineer,
Metallurgical Mines' Association of China, made a speech on "New
Changes in Domestic Iron Ore Supply and Demand".
Lei Pingxi, Chief Engineer, Metallurgical Mines' Association
of China
Summary of speech
Stimulated by the increasing demand and surging prices, domestic
mine construction and investment increased rapidly and the
production has increased substantially.
There are 2,540 certified iron ore mines in China, 1,307 of
which are iron ore mining and separation enterprises. The
designed raw ore capacity is 550 million tons per year, finished
ore production capacity is 450 million tons per year, and pellet
capacity is 270 million tons per year. The actual production of
iron ore raw ore is 763 million tons, finished ore is 238
million tons, and pellets are 138 million tons. Many
medium-sized mines and small mines are inactive, with only about
half of normal operation.
In the first two months of this year, domestic pig iron
production increased by 9.8% year-on-year, iron ore market
improved slightly with output recovering. The Brazil dam
accident is stirring the market. It is estimated that Brazil's
iron ore exports will decrease by 29 million tons in 2019.
However, from the current iron ore supply, the market can rely
on non-mainstream mines to make up the supply gap. In the
future, the growth rate of global iron ore demand will be slower
than that of crude steel, and the international iron ore price
may not be maintained at less than 70 US dollars for a long
time. |
