Iron ore may rise in the short term

India and Australia are considered to be important suppliers of Chinese iron ore imports.

In January, India increased its iron ore export tariffs from 20% to 30%. The Australian Mineral Resources Tax Act, which has a major impact on China’s iron ore imports, will only be passed by the Australian Parliament in what form.

In 2011, China imported 73.055 million tons of Indian iron ore, a year-on-year decrease of 24.36%, accounting for 10.6% of China's iron ore imports; China imported 297.68 million tons of iron ore from Australia, an increase of 11.8% year-on-year, accounting for the total annual imports. 43%.

Changes in the taxation of iron ore in these two countries will directly affect the production costs of Chinese steel companies.

In an interview with this reporter, An Haixuan, a researcher in the metallurgical industry of China Investment Advisors, pointed out that in view of the current international situation, there are still many influencing factors in the iron ore market. "In the first half of this year, the slump in China's real estate and auto industries will continue, and the supply of iron ore will continue to rise. Therefore, the situation of sharp price increases is not clear. However, in the short term, there may still be price increases. Sex." An Haixuan said.

He believes that, on the one hand, the adjustment of export tariffs in the international market has a certain impact on iron ore exports. In the future, the rise in export prices of resource products is an inevitable trend. Only when the state of supply exceeds demand continues to exist, prices may decline sharply. At the same time, the introduction of carbon tax is also iron ore

The rise in the price of stone has provided space for future imports. The price of imported iron ore still depends on market supply and demand and the basic environment.

On the other hand, although the upcoming traditional sales season is expected to ease the weakness of the steel market, due to the limited market demand, steel companies may not be able to achieve large-scale reversals in the short-term, but short-term price increases. still exists. Some domestic steel companies have started to replenish raw materials and prepare for the upcoming manufacturing season.

With domestic steel companies starting to replenish raw materials, iron ore stocks have recently declined. This may create some room for price increase. At present, iron ore traders have a slower wait-and-see sentiment and strong expectations of rising sentiment.

At the same time, An Haixuan believes that as a pillar industry of the national economy, the iron and steel industry involves a wide range, high correlation, and large consumer spending, and will not continue to slump.