This year, there is an excess of 70 million tons of iron ore

Wu Xinchun, deputy secretary-general of the China Iron and Steel Association, said at the “fourth committee meeting of the Iron and Steel Industry Association” on the 22nd that according to the estimated 660 million tons of crude steel production, the supply of iron ore in China will exceed 70 million tons this year. Excess supply.

In 2010, domestic domestic iron ore production was 1.07 billion tons. Conservatively, this year's domestic mine growth rate will be around 10%. If it is converted into finished products, this year's domestic production will reach 405 million tons, an increase of 37 million tons from 2010. With this alone, it is possible to directly reduce about 25 million tons of imported iron ore. In fact, in 2010, under the background of the recovery of international iron ore supply and demand, China’s dependence on imported iron ore has declined for the first time in ten years, and the pillar status of domestically produced ore is gradually reflected. In 2009, China imported 627 million tons of iron ore. The dependence on the actual demand after eliminating port inventory was 62.5%. In 2010, China imported 618 million tons of ore, which was a decrease of 1.43% year-on-year, and the dependency was 60%. .

From the perspective of international supply, overseas miners will increase their supply of iron ore to China by approximately 35 million tons this year. Taken together, it is expected that there will be 58 million tons of excess supply in 2011. In addition, 30 million tons of equity mines will be added in 2011. According to the Ministry of Industry and Information Technology of China's crude steel production this year is expected to reach 660 million tons, this year's iron ore supply to the Chinese market will appear more than 70 million tons.

Wu Xinchun expects that the supply of iron ore in 2011 will appear before the tight and loose, before the price is high and then low. He believes that the recent increase in the price of iron ore bubbles will be broken in March-April.