As the world’s largest consumer of iron ore, China has long relied on imports as the country’s iron ore resources cannot meet its domestic demand.
According to public data from the U.S. Geological Survey, as of 2021, China’s uncovered iron ore resources, including raw and iron-bearing ore, are about 26.9 billion tons, accounting for 10 percent of global reserves.
However, more than 90 percent of China’s iron ore is of poor grade. Its average ore grade, as measured by iron content, is only 35 percent, far lower than Brazil’s 52 percent and Australia’s 48 percent. At the same time, China’s iron ore is buried deep, making the mining costs very high. As a result, Chinese steel companies have to import large quantities of iron ore….