Australia: Raise China's iron ore demand expectations, increase by 4.5%

The Office of Chief Economist (OCE), the Australian Government’s commodity forecasting agency, recently raised China's iron ore demand forecast in 2020 in its quarterly report on resources and energy.

Argus media reported on the 20th that OCE raised China’s iron ore demand forecast for 2020 by 4.5 percentage points from 1.16 billion tons in September to 1.21 billion tons. This reflects the Chinese government’s spending on railway and highway infrastructure projects. influences.

　　 However, OCE also predicts that Australia’s iron ore exports to Brazil are 269 million tons, which is 26% lower than the previous forecast of 366 million tons. This is mainly due to ore production problems in Vale, Brazil’s largest manufacturer.

　　 Strong demand in China and supply problems in Brazil have brought iron ore prices close to record levels. OCE stated in the report that the rapid rise in iron ore prices in recent months has been supported by strong demand in China, which is related to the economic stimulus measures adopted by the Chinese government.

(Editor in charge: China Steel Network)