1/4
If near-record iron ore prices reflect stronger-than-ever demand from China, the two most likely explanations are, first, that there has been as of yet no rebalancing of domestic demand towards consumption and away from investment in infrastructure... https://www.scmp.com/economy/china-economy/article/3132693/china-australia-relations-iron-ore-prices-hit-record-market?utm_source=Twitter&utm_medium=share_widget&utm_campaign=3132693">https://www.scmp.com/economy/c...

2/4
and property and, second, that Chinese steel producers are forging a great deal of excess steel inventory. It is probably a combination of both, but more of the former. As a recent report points out: "Iron ore consumption in China, which accounts for more than 60% of...

3/4
the global total, grew by 4.4%, with steel output in the country growing by 5.7% in 2020."

Rising inventories are unsustainable, and because I think Beijing is genuinely determined to rebalance demand – and will probably succeed at least during...

https://currently.att.yahoo.com/att/global-iron-ore-mining-2025-081600846.html#:~:text=In%20contrast%2C%20iron%20ore%20consumption,growing%20by%205.7%25%20in%202020.">https://currently.att.yahoo.com/att/globa...

4/4
this year – I still expect iron ore prices to ease before the end of 2021, although with the expected US infrastructure plan, whether iron ore prices surge again some time in 2022 will largely depend on how quickly Beijing lowers its GDP growth targets.