[Ferro-Alloys.com]

  According to data recently released by China Iron and Steel Industry Association, from January to November, China produced 961 million tons of crude steel, with a year-on-year increase of 5.50%; 813 million tons of pig iron, with a year-on-year increase of 4.17%; and 1.202 billion tons of steel, with a year-on-year increase of 7.03%.

  Based on “Report on China's and national steel demand forecast in 2021” recently released by the Institute of metallurgical industry planning and research, China's crude steel output in 2020 will be 1.050 billion tons, a year-on-year increase of 5.4%, breaking 1 billion tons for the first time; China's crude steel output in 2021 will be 1.065 billion tons, a year-on-year increase of 1.4%.

  The report also predicts that in 2020, China's steel consumption will be 981 million tons, a year-on-year increase of 9.6%, a record high; in 2021, China's steel demand will be 991 million tons, a year-on-year increase of 1.0%.

  In accordance with the report, in 2020, under the action of a series of policies to promote investment and stabilize growth, such as the state's active fiscal policy and prudent monetary policy, the construction of "two new and one heavy" fields will make great efforts, and the steel consumption of China's construction, machinery, energy and other major downstream industries will maintain a growth trend, driving the rapid growth of China's overall steel consumption.

  In November, the crude steel output of 64 countries reported to the world iron and Steel Association was 158.3 million tons, up 6.6% year-on-year. It is worth noting that although China's iron and steel industry accounts for half of the world, iron ore (996,9.00,0.91%) is still highly dependent on imports.

  According to the data of General Administration of Customs, from January to November 2020, China imported 1.073 billion tons of iron ore, with a year-on-year increase of 106 million tons (11%); the total import volume was $107.202 billion, with a year-on-year increase of $14.915(16.16%). According to this calculation, the average import price of China's iron ore from January to November 2020 is 99.88$/T.

  Li Xinchuang, Secretary of the Party committee and chief engineer of metallurgical industry planning and Research Institute, pointed out at the fourth member congress of Metallurgical Industry Energy Conservation Committee of China Energy Conservation Association that China's iron ore price index CIOPI(TFe62%) rose from 79.5 $/T after last year's Spring Festival to the recent high of 155 $/T, with an increase of more than 95%. And iron ore futures prices exceeded 1000 ¥/T, a new high since the listing. "In fact, the cost of a ton of iron ore in foreign mines is about $30, which is equivalent to the gross profit of a ton of iron ore exported to China of about $120. The contradiction between supply and demand, unreasonable pricing mechanism and financial speculation are all the reasons for the sharp rise in iron ore prices. "

• [Editor:Catherine Ren]