DEMAND

摘要

In January, China's pig iron production was down 1Mt from December at 73Mt, though this was up 7.7% yearon-year. The decline can be attributed to the pause in manufacturing activity that occurs around the Chinese New Year period. The country's factory activity expanded in February but at a slower pace than the two previous months, missing market expectations, with the PMI falling to 50.6. The sustainability of iron ore demand is dependent the country's public debt financing that has been poured into infrastructure projects. President Xi will be unveiling the new five-year economic blueprint, which will confirm plans on virus-related fiscal support. It is expected that China will par back infrastructure spending which would weigh on iron ore demand over the medium term as Beijing looks to implement a 'dualcirculation' economic strategy.