China's iron ore demand is expected to remain high over the next 12 months, although Chinese steelmakers may seek to reduce production slightly should iron ore prices remain at a level that renders many of them unprofitable, the OCE said. Demand in many other countries is expected to stay below its 2019 level, with range of steelmakers in Europe and south Asia remaining on hiatus or shut down and not expected to return to production until iron ore prices drop.

 

But Chinese iron ore demand growth may be nearing its end. "Chinese demand for iron is likely at its peak, with a decline expected over the next 10 years as a growing share of its steel production is drawn from domestic recycling. This will result in reduced Chinese dependence on the seaborne iron ore market," it said.

 

 

Source: Argusmetal