China’s Iron Ore Imports Fall
Australia’s exports of iron ore have 80%-85% flows to China. In China, 62% of the imported iron ore came from Australia, and 16% of them came from Brazil. At the same time, due to the supply of iron ore from Brazil and other competitors, Australia believes that the iron ore prices will fall this year, likely to fall to $55 / ton by the end of the year, and further to $49 / ton in 2020. “The ore price will be down before the moderate recovery.”
Australia’s Ministry of industry, innovation, and technology said that China’s steel output will decline, which will further affect iron ore demand and drag down prices. The main factor behind this is that China’s construction activities and infrastructure investment are slowing down, and environmental regulation is tightening constantly, resulting in a decline in steel output. In recent months, it has also been superimposed on the historical high inventory factor.
