Spot prices of iron ore slid to their lowest in seven weeks with no signs demand from China, the biggest market for the steelmaking material, will pick up amid ample output. Iron ore prices had been declining following efforts in top steel producer China to curb production as it rushes to meet a five-year energy efficiency target that ends this year. Steel mills, mostly in the production base of Hebei, had been either temporarily shut or ordered to trim output by up to 70 percent. China’s domestic production of iron ore reached 99.58 million tonnes in August, the second highest on record, while imports fell 13 percent from July, recent data showed.
High domestic production with falling imports. Has the dragon found a local buffet?
China recently discovered new iron ore reserves exceeding 15 billion tons, reports Xinhuanet citing information from the Working Conference of National Metal Resources Management.
Wang Ming, the vice minister of Land and Resources, said approximately 10 billion newly found iron ore reserves are located in Yanzhou, Anshan and Jidong.
Several new large-sized iron ore mines are currently in the planning stages throughout these regions.
Maybe this is just a policy led downturn that will be short lived. Or is peak iron demand from Australia behind us ? If so, how is Australia’s debt laden economy going to cope ?
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