News Analysis
China has set up a new state-owned group in charge of centralized iron ore procurement to increase its bargaining power in the international market.
China’s iron ore demand is huge. Data shows that since 2016, China’s annual iron ore imports have exceeded 1 billion tons. In 2021, China imported a total of 1.126 billion tons, accounting for nearly 70 percent of China’s iron ore consumption that year. Domestic iron ore resources are primarily of poor grade, and domestic output is low, making China highly dependent on imports.
Presently, global iron ore resources and supplies are highly concentrated in Australia and Brazil, and sellers have dominated the market for a long time….