Conference was attended by 470+ delegates from 10+ Countries with 160+ overseas audiences.
Conference is known for largest iron ore trade community gathering with local steel maker participation. This year objective was to understand demand, supply, future Outlook, financial, investment perspective and operation Outlook in China.
Major Highlights:
1. China will continue to cut production. Good number of low efficient plant will shut down due to tough environment clearance norms.
2. Demand of low grade iron ore has fallen drastically. Buyers are very interested in high grade material and pellet. Offers of Indian pellet in conference are heard at about 119-120/MT CFR China.
3. Premium of pellet will rise further over strict restrictions on pollution and environment.
4. Vedanta is targeting to export 13—14 million tones this FY. They are presently offering low alumina grade ore with AL below 3.5% Fe 57.7%.
5. Low grade ore inventory is high in the china port as buyers are away. Present iron ore inventory in 42 ports reached to 142 which is Y-o-Y up by 32% in July 17 according to sources. Few participants mentioned that the major inventory is of low grade on the ports.
6. Local iron ore miners’ production rate negative first time in July ’17 onwards. Due to maintenance, environment inspection lots of miners are closed.
7. The number of medium and large mines was reduced from 2347 (2016) to 1879 till July ’17. In coming years domestic mines may be reduced further due to environment norms.
8. Scrap ratio mix increased to 15% in the total crude steel production up 4% compared to previous year. In 2016 steel scrap generated 160-170 million tones.
9.Out of the total scrap generated mainstream only used 90 million tones, remaining was used by induction furnaces which are now closed.
10. Scrap industry in China has started taking shape and private players’ association is lobbying government to promote more usage of scrap.
11.Scrap export from China may rise in future as local mill purchase limited amount of scrap.
Source Steel Mint powered by Keyvan Jafari Tehrani (JTC)
