China’s infrastructure-driven steel price rise to lift imports of Australian ore in Jan
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Update time : 2022-01-17 21:51:57
China’s infrastructure-driven steel price rise to lift imports of Australian ore in Jan
Strong infrastructure investment to lift demand for steel, imported iron ore
By Global TimesPublished: Jan 16, 2022 10:15 PM
Iron ore Photo:VCG
China's iron ore imports may reach 90 million tons in January, which would represent a 5 percent month-on-month increase, driven by stronger infrastructure investment, and Australia is likely to account for 60 percent of those imports, becoming the biggest beneficiary, industry insiders said on Sunday.
Domestic steel prices have gradually rebounded over the past two months, with the main contract for rebar futures up nearly 10 percent, driven by plans to increase infrastructure spending. That reflects rising steel demand in China and signals more iron ore imports.
While commodity prices generally reached low ebb at the end of the year, the market for iron ore was an outlier - prices bottomed out and started a slow rebound starting in November.
As of Thursday, the Platts iron ore price index was $128 per ton, an increase of $40.8 per ton or 46.8 percent from the low point in November 2021.
Industry analysts said that rising iron ore prices reflect an expected pick-up in China's infrastructure investment this year, especially as local government bond funds have become an important source of financing for infrastructure investment.
