Despite trade tensions, China’s demand for Australian iron ore is still growing rapidly

Australian iron ore exporters are unaware of Beijing’s continued economic sanctions on Australian exports, as China’s huge demand for minerals has pushed highs for up to a decade.

Rio Tinto, a major iron exporter, said Australia’s iron ore assets performed well in the first quarter of 2021.

The company’s first quarter production performance report (pdf), It showed that their iron ore exports increased by 7 percent compared to the same quarter last year.

“China’s industrial economy continues with strong momentum,” the report said. “China’s steel prices ended the quarter with their 10-year highs as construction activity and steel demand in the first quarter were the highest since 2018.”

But China’s focus on reducing emissions could curb production and impact iron ore exports, he said.

According to the price of minerals Market indexIs currently trading at around US $ 176 per ton. Prices found on Fastmarkets clearly Tuesday’s ore was trading at US $ 189.61 per ton.

by World SteelChina produced 83 million tonnes of crude steel in February alone. This is more than 10 times that of India, the next highest producer.

Epoch Times Photo
This photo was taken on May 15, 2019 and shows a truck transporting imported iron ore at a port in Rizhao, Shandong Province, eastern China. (STR / AFP via Getty Images)

“Iron ore is Australia’s only largest export, overwhelming coal and agricultural exports, and prices continue to skyrocket to levels far beyond most analysts’ expectations, so this year. Mining companies’ profit growth has improved further, and consensus forecasts have been told to Wall Street Journal by Shane Oliver, chief economist at AMP Capital.

The Department of Foreign Affairs and Trade (DFAT) of Australia has revealed that overall, year-on-year trade fell by only 2 percent, despite China’s continued economic threats.

However, if iron ore exports were excluded from these figures, commodity exports would fall by 40% in Australia, said Jennifer Gordon, chief economist at DFAT. Senate hearing..

“China’s comparable value is down 7.5% from the second half of 2020 compared to the second half of 2019,” Gordan said. “This increased iron ore exports by 20 percent, but with the removal of iron ore exports, the decrease was 40 percent.”

The DFAT also revealed that coal, which Beijing currently bans from entering China, fell 83 percent. In addition, 40 coal-filled vessels are currently stuck off the coast of China, some of which have been stuck for “months.”

Treasury Secretary Josh Frydenberg convinced Western Australia’s “Leadership Issues” breakfast speech that exports will continue to flow due to China’s iron ore needs despite current trade conflicts. Said.

“Not only is China continuing to industrialize, but it is also the number one steel exporter in the world, employing thousands of people across the country,” he says. Said..

Beijing began imposing disciplinary trade sanctions on a series of Australian exports after Australian Foreign Minister Marise Payne sought an independent investigation into the origin of the CCP virus (Coronavirus).

Diplomatic tensions with China intensified yesterday after Payne used the new federal oversight to cancel the Victorian Belt and Road Initiative’s deal with China because it protects national interests.

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