Industry News

Brazil may gain iron ore share

Views : 315
Update time : 2020-06-02 22:37:48
Chinese demand for iron ore, a key raw material for making steel, is on the rise -- and Brazil is expected to seize a bigger market share despite a slump in May shipments, Chinese experts said on Tuesday.

As a palpable sense of rising trade tension between China and Australia grips industry players, some are expected to switch to Brazilian and South African iron ore, industry experts said.

The world's second-largest economy is recovering from the impact of the COVID-19 pandemic, with a key focus on new-type infrastructure construction, and demand for steel keeps rising.

Iron ore stockpiles at 45 Chinese ports are near four-year lows, coupled with a surge in the price of iron ore futures, according to a Futures Daily report on Tuesday.

From April, the price for iron ore futures has risen by 43 percent, domestic news portal 21jingji.com reported on Tuesday. The September-dated futures on China's Dalian Commodity Exchange closed at 757 yuan ($106.6) per ton on Tuesday.

Although the Chinese government has so far taken no action to curb Australia's $63 billion iron ore exports to China, and Australian miners are reportedly ready to increase output, Chinese experts warned that the landscape could change within the year.

The current high price of iron ore will weigh heavily on Chinese steel mills if it persists, and they are "eagerly seeking to diversify their import sources", Wang Guoqing, research director at the Beijing Lange Steel Information Research Center, told the Global Times. 

 
Related News
Read More >>
Vedanta Aluminium signs 5-year natural gas deal with GAIL in shift to renewable energy Vedanta Aluminium signs 5-year natural gas deal with GAIL in shift to renewable energy
Nov .21.2024
Vedanta Aluminium signs 5-year natural gas deal with GAIL in shift to renewable energy
Australian Aluminium Council unites with AAEA, strengthening the downstream manufacturing sector Australian Aluminium Council unites with AAEA, strengthening the downstream manufacturing sector
Nov .21.2024
Australian Aluminium Council unites with AAEA, strengthening the downstream manufacturing sector
Alumina price hike ratio takes a step back; aluminium extrusion export drop potent to lead ingot price drop Alumina price hike ratio takes a step back; aluminium extrusion export drop potent to lead ingot price drop
Nov .21.2024
Alumina price hike ratio takes a step back; aluminium extrusion export drop potent to lead ingot price drop
Rio Tinto collaborates with GravitHy for steel decarbonization project in France Rio Tinto collaborates with GravitHy for steel decarbonization project in France
Nov .21.2024
Rio Tinto collaborates with GravitHy for steel decarbonization project in France