The China Mining Association held a meeting on 29 Dec’21 to analyse the production and operational situation of metallurgical mines and to discuss the development trends and challenges in CY’22.
According to the association, iron ore prices in China are expected to continue fluctuating in CY’22 (Jan-Dec’22). However, these will reduce significantly at some point of time the year after.
It is also expected that global steel demand will grow with easing in iron ore supply, boosting the macro economy of China. Furthermore, domestic steel production is expected to pick up momentum, indicating a recovery in the overall market situation.
Lei Pingxi, Chief Engineer of China Mining Association, presented the highlights of the iron ore industry in CY’21:
- Domestic steel production decreased.
- Iron ore and scrap resources grew rapidly.
- Iron ore production and delivery fell below expectations.
- Iron ore demand fell from a high level.
- Domestic steel demand hit a new low.
- Overseas demand has increased substantially.
- Prices of fossil fuels and carbon have risen overall.
- Investment in the carbon chain has fallen.
- The overall recovery of the carbon chain has significantly improved the profitability of mines.
Furthermore, the association proposed that the industry should focus on building resource protection capabilities, improve market competitiveness and develop technological innovations while focusing on low-carbon transformation and development in CY’22.
At the meeting, 10 leading mining entities, including Baowu Resources, Anshan Iron and Steel Mining, HBIS Mining, Inner Mongolia Volkswagen Mining, Shandong Mining highlighted their CY’21 production and operational developments and challenges as well as their roadmap for CY’22.
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