DEMAND--I'll Do Anything for Ore... but I Won't Do That

摘要

Despite area-specific reductions and an overall policy of consolidating and relocating steel production capacity, Chinacontinues to see record-highs in steel production—spurred on in turn by consumption in the infrastructure sector as thecentral government works to stimulate demand and avoid economic contraction as seasonal downturns and economictensions combine. In total, China produced around 230Mt of steel in Q1, a 10% year-on-year increase and the highestlevel of production for any quarter. March itself continued the upwards trend, also rising by 10% to reach a production totalof 80Mt. Chinese steel producers also replenished their inventories of iron ore in March, moving imports up to 86.4Mt froma fairly low-end February, which saw 83Mt imported. Imports fell to an 18-month low in April, however, with disruptions inBrazil and inclement weather sticking imports down at 80.7Mt for the month.