China reduced the production of iron ore by 1% y/y in 2022

In 2022, the production of iron ore in China decreased by 1% compared to 2021 – to 967.9 million tons. SteelOrbis reports about it with the reference to data from the Chinese National Bureau of Statistics (NBS).

In December 2022, iron ore production decreased by 1.2% compared to November – to 78.6 million tons. Compared to December 2021, production increased by 2.4%.

Imported iron ore prices show a general upward trend amid prevailing positive sentiment among market players. Iron ore quotations are expected to continue to rise in February as demand for steel improves, boosting demand for the raw material.

Iron ore futures on the Dalian Commodity Exchange on January 13-20, 2023, became cheaper by 2.6% compared to the previous week – to 865 yuan/t ($127.5/t). Iron ore prices remain high amid optimism about renewed activity in China.

At the same time, the market reacts quickly to reports about the situation with the coronavirus in China, fearing a deterioration in demand. As a result, iron ore quotations are decreasing. Potential risks are associated with additional waves of COVID-19 in China.

As GMK Center reported earlier, international credit rating agency Fitch Ratings confirmed the predictions regarding iron ore prices for the current, 2023 and 2024 years. The world demand for steel continues to slow down, but the steel market is not overcrowded – the decrease in supplies from Ukraine and the Russian Federation is compensated by the drop in demand in Europe and other regions. It is predicted that by the end of 2022, the price of iron ore will be $115/t, in 2023 – $85/t, and in 2024 – $75/t.