Supply pattern has been formed to import dependency are still high

Liu Xiaoliang pointed out that in the first half of China produced 357.53 million tons of pig iron,API 5L X65 Steel Pipe iron ore consumption of about 572 million tons of finished product. Over the same period, China's imports of iron ore 384.29 million tons, domestic output of iron ore, ore 646.39 million tons, convert the finished mine is 202 million tons.
He said that in the first half of the total supply 586 million tons of finished ore, iron ore products ore supply, is greater than the demand of more than 1000 1000 tonnes. In addition, iron ore imports in July this year to 73.14 million tons, 10.84 million tons more than in June, year-on-year growth of 26.39%, that month supply 10 million tons of finished products.

"The pattern of the iron ore market oversupply, preliminary already form, and will gradually increase." At present, the imported ore overall performance is: the increase of price falls,7D Butt Welded Bend Pipe fittings but not by much.

Market is expected by the end of 2013, four mines Rio tinto, BHP billiton, fortescue, vale will have a total capacity of 970 million tonnes (784 million tons of pig iron production), 2014, 2015 will reach 1.165 billion tons and 2015 tons.And mineral within can release. In 2013, domestic ore production is expected to reach 1.41 billion tons,ASTM A234 socket welding pipe fitting tee an increase of 7.5% or so; By 2015, the domestic mineral ores will amount to 1.6 billion tons, 2020 of 1.44 billion tons.

Liu Xiaoliang said that supply cost price for a long time, in the long run, the iron ore market price will return to the marginal cost. According to the existing planning, the future growth of world iron ore production capacity, will greatly exceed demand. However,Hot Expanded welded spiral steel tube affected by the high cost of domestic resources, the future dependent on imported ore will continue to maintain a higher level.

He predicts that the future iron ore more than 80% of the incremental, from Brazil, Australia. Brazil supplies China landed cost about $65 / ton, Australia supply China landed cost about $60 / ton. In China, the average production cost about 105 dollars/tons, of which $80 / ton below 40%, 80 ~ $100 / ton (25%), 100-120 dollars/ton (15%), 120 ~ 140 and more than $140 / ton, 10% each.