Chinese Steel Production and Iron Ore Import

摘要

Chinese steel production has so far this year been at about the same level as last year, while iron ore imports have set new records almost every month. This has since the start of the year boosted iron ore spot prices as well as dry bulk shipping markets. As steel production is remaining stable, while iron ore imports are increasing, inventories are growing. The question is how long this development is sustainable. Global steel demand is low, steel prices are about half of what they were one year ago, and Chinese steel exports are decreasing. At the same time, China Iron and steel Association are in negotiations with Vale, Rio Tinto and BHP Billiton about next years benchmark price of iron ore while the spot price have now reached its highest level this year.