According to data released by the General Administration of Customs yesterday, China imported 61.863 million tons of iron ore in 2010, a year-on-year decrease of 1.4%. Among them, China's iron ore imports in December was 58.08 million tons, a year-on-year decrease of 6.6%, a year-on-year increase of 1.2%. This is the first decline in iron ore imports in the country in 12 years.
As the iron ore pricing system changed to index pricing in 2010, import prices continued to climb. The data shows that although the import volume of iron ore in 2010 decreased by about 9 million tons compared with 2009, the total amount spent on imports totaled approximately 78.9 billion U.S. dollars in the year, an increase of 28.7 billion U.S. dollars from 2009.
“Ore prices are still expected to rise this year.†At a meeting of the steel industry last weekend, a private steel mill with an annual output of 10 million tons in Hebei told this reporter. Faced with high steel prices, high ore prices, and low profits in the industry, the above steel makers frankly stated that there is no fundamental solution to raw material price increases, and that only by adopting agreements with spot mines to alternately purchase and band-operating methods can partially ease the pressure on high ore prices. .
In the ongoing trend of high ore prices, the original low-grade, high-cost domestic iron ore has also had a strong driving force for resumption of production, which to a certain extent has replaced the foreign mining import market. According to calculations by Qilu Securities, the current average cost of domestic mines is 700-800 yuan/ton, and the marginal cost is 1,000 yuan/ton, which is much higher than the mining cost of foreign mature mines of US$10-30/ton. However, due to the increase in steel production this year to 620 million tons, an increase of 8.8% year-on-year, making iron ore demand unprecedented prosperity. The reporter learned from the industry that at present the mine has been basically fully loaded. The lowest grade in Tangshan has been as low as 8%, and the marginal cost is as high as 1,100 yuan/dry ton. Tangshan Tianjin West 66% iron powder purchase price has reached 1,420 yuan / ton. Although the supply and demand patterns of iron ore are widely expected to change in the industry, with the successive production of new mine projects in major mines, the balance of supply and demand and even the reversal of the supply and demand situation will be ushered in around 2014, but “far water cannot save near fireâ€. The supply of iron ore still can't get out of tension. The reporter learned from some steel companies that the current mainstream mines have not issued the letter of offer in the first quarter of this year, but according to the quarterly pricing formula, an increase of 8%-9% has basically become a foregone conclusion. According to plans for the construction and start-up of blast furnaces in various steel mills, this year's steel production capacity will be further released, and the demand for ore will be further enhanced by then. At present, the ore demand is off-season, but the ore price is still strong. After the steel mills release their production capacity in the future, the ore price may rise again.
As the iron ore pricing system changed to index pricing in 2010, import prices continued to climb. The data shows that although the import volume of iron ore in 2010 decreased by about 9 million tons compared with 2009, the total amount spent on imports totaled approximately 78.9 billion U.S. dollars in the year, an increase of 28.7 billion U.S. dollars from 2009.
“Ore prices are still expected to rise this year.†At a meeting of the steel industry last weekend, a private steel mill with an annual output of 10 million tons in Hebei told this reporter. Faced with high steel prices, high ore prices, and low profits in the industry, the above steel makers frankly stated that there is no fundamental solution to raw material price increases, and that only by adopting agreements with spot mines to alternately purchase and band-operating methods can partially ease the pressure on high ore prices. .
In the ongoing trend of high ore prices, the original low-grade, high-cost domestic iron ore has also had a strong driving force for resumption of production, which to a certain extent has replaced the foreign mining import market. According to calculations by Qilu Securities, the current average cost of domestic mines is 700-800 yuan/ton, and the marginal cost is 1,000 yuan/ton, which is much higher than the mining cost of foreign mature mines of US$10-30/ton. However, due to the increase in steel production this year to 620 million tons, an increase of 8.8% year-on-year, making iron ore demand unprecedented prosperity. The reporter learned from the industry that at present the mine has been basically fully loaded. The lowest grade in Tangshan has been as low as 8%, and the marginal cost is as high as 1,100 yuan/dry ton. Tangshan Tianjin West 66% iron powder purchase price has reached 1,420 yuan / ton. Although the supply and demand patterns of iron ore are widely expected to change in the industry, with the successive production of new mine projects in major mines, the balance of supply and demand and even the reversal of the supply and demand situation will be ushered in around 2014, but “far water cannot save near fireâ€. The supply of iron ore still can't get out of tension. The reporter learned from some steel companies that the current mainstream mines have not issued the letter of offer in the first quarter of this year, but according to the quarterly pricing formula, an increase of 8%-9% has basically become a foregone conclusion. According to plans for the construction and start-up of blast furnaces in various steel mills, this year's steel production capacity will be further released, and the demand for ore will be further enhanced by then. At present, the ore demand is off-season, but the ore price is still strong. After the steel mills release their production capacity in the future, the ore price may rise again.