In 2020, both the volume and price of China's iron ore imports rose significantly, the annual import volume reached 1.1 billion tons for the first time. Analyst believe that it mainly because of three reasons: first, the stable growth of China's steel production and strong demand for iron ore. Second, low inventory resulted in a huge demand for replenishment. Third, the depreciation of the US dollar has pushed up the import cost of iron ore. At the same time, capital speculation is also considered to be one of the factors.

 

Besides, analysts believe that in 2021, with the resumption of production of Vale and the stable production of Chinese mines, the supply and demand of the global iron ore market will basically maintain a balance, and the price will gradually return to a rational level from a high level. However, as the current iron ore price has been pulled up to a higher position, the average iron ore price is expected to continue to move up in 2021.