Iron ore imports hit another record high in January

Last year, China's iron ore imports fell in this year's trend did not continue into the first month of 2011, China's imports of iron ore once again hit a record high the month. Industry insiders expect their prices and quantities to remain high in the near future. According to statistics released by the General Administration of Customs on February 14, China imported 68.97 million tons of iron ore in January, an increase of 47.9% year-on-year, an increase of 10.89 million tons from December last year. The average import price in January was US$151.4 per ton, up 66% year-on-year.   The price of iron ore increased in January, in line with market expectations. “From the analysis of supply and demand balance, 2010 is generally digested ore stocks. In January 2011, more imports were mainly used to replenish stocks, and long-term agreement mine imports have also increased.” “My Steel” Research Center analyst Zeng Jie Victory analyzed the "First Financial Daily". According to the reporter, compared with last year, the operating rate of steel mills has also increased. In the second half of last year, due to the pressure of energy-saving and emission-reduction indicators, some steel mills were forced to stop production due to power cuts in various places, but now they have resumed, which has led to high construction steel construction rates. According to the statistics of China Steel Association, the daily average crude steel output of China's key steel enterprises was 1.5 million tons from January 1 to 20, an increase of 68,000 tons from the 14.32 million tons in December last year. In addition to the strong demand in the domestic steel market to stimulate the growth of ore imports, the difference between imports and exports is also the main reason for the sharp increase in China's iron ore imports. Steel Information Consulting Company's "Steel House" analysis report pointed out that from the perspective of domestic raw ore production, due to the cold weather, the mine production capacity in the northern region could not be completely released. Therefore, despite the continuous increase in domestic iron fines prices, China's iron ore mine in December last year. The average daily production of the stone ore mine is decreasing. At the end of each year and year, the average daily output of China's iron ore ore is at a low level throughout the year. At this time, the steel mill is in the period of iron ore winter storage, the demand for iron ore is strong, and the import volume of foreign mines with an advantage in price increases naturally. Historical statistics also show that since the domestic mine price rose in September 2010, it has been 50-100 yuan/ton higher than imported mines. The increase in iron ore imports has also contributed to the continued rise in imported spot mine prices. Since the end of last year, the spot price of imported iron ore has been rising, and has risen from around $167/ton in December last year to a threshold of nearly $200/ton, a record high since 2010. In January, the soaring price of minerals was able to be afforded by steel mills, mainly due to the fact that sea freight rates have been declining and continue to be in contact with historical lows. However, after the Spring Festival, due to the relief of weather problems in Australia, coal exports returned to normal, and the demand for chartering after the Spring Festival holiday warmed up. The international dry bulk freight market, which had fallen for a month or two, also began to rebound after the holiday, and the Baltic dry bulk. The freight index began to rebound in a row, which will also increase the transportation cost of imported raw materials. "At present, the sea freight rate is still very low, and it is expected to rise in the future." Zeng Jiesheng pointed out that the mine price is likely to remain high in the near future, but if the steel price stagnate, the mine price may also show a significant downward trend. Zeng Jiesheng also believes that due to cost support, overall inventory is not high, steel is not high compared to other bulk commodities , downstream has a certain digestive capacity and other factors, the steel market will continue to rise for some time, before the end of March Not big.  

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