![](https://i.imgur.com/CLvY2jA.png")
24-08-2021, 06:27 AM
Sarah Sharples
AUGUST 23, 2021 4:03PM
Iron ore's price has experienced a huge crash with a whopping 40 per cent drop in the past month alone, falling from a high of $US233 ($A325) a tonne to below $US130 ($A181).
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China’s policymakers have flagged that they are looking to keep the country’s steel production in 2021 at 2020 levels in order to reduce emissions
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“For China to achieve that goal, crude steel output needs to fall 12.2 per cent a year from August to December. In July, China’s crude steel output contracted 8.4 per cent a year, signalling that output cuts are not just being talked about, but happening,” he told news.com.au.
“Demand conditions in China’s property and infrastructure sectors have also weakened, reaffirming market anxieties that China’s steel output cuts for the remainder of the year are inevitable. The infrastructure and property sectors account for 20-25 per cent and 25-30 per cent of China’s steel demand respectively.”
In Brazil, following a fatal dam collapse in January 2019 at one of its iron ore operations, production dramatically dropped causing prices to soar, he added.
But now iron ore supply from Brazil is expected to increase by 0.8 per cent in 2021, however the big impact to prices is not expected to hit until next year, Mr Dhar said.
It’s major operation is expected to increase iron ore output by between 3 and 3.5 per cent, he added.
“That’s why we believe Brazil will have a bigger impact on iron ore markets in 2022 given the supply increase is expected to be far more substantial,” he said.
......
These factors combined could mean bad news for the Australian economy given the iron ore boom has given it a considerable boost after the knock it’s taken from the pandemic and lockdowns.
https://www.news.com.au/finance/economy/...2412cdf1cb
AUGUST 23, 2021 4:03PM
Iron ore's price has experienced a huge crash with a whopping 40 per cent drop in the past month alone, falling from a high of $US233 ($A325) a tonne to below $US130 ($A181).
......
China’s policymakers have flagged that they are looking to keep the country’s steel production in 2021 at 2020 levels in order to reduce emissions
......
“For China to achieve that goal, crude steel output needs to fall 12.2 per cent a year from August to December. In July, China’s crude steel output contracted 8.4 per cent a year, signalling that output cuts are not just being talked about, but happening,” he told news.com.au.
“Demand conditions in China’s property and infrastructure sectors have also weakened, reaffirming market anxieties that China’s steel output cuts for the remainder of the year are inevitable. The infrastructure and property sectors account for 20-25 per cent and 25-30 per cent of China’s steel demand respectively.”
In Brazil, following a fatal dam collapse in January 2019 at one of its iron ore operations, production dramatically dropped causing prices to soar, he added.
But now iron ore supply from Brazil is expected to increase by 0.8 per cent in 2021, however the big impact to prices is not expected to hit until next year, Mr Dhar said.
It’s major operation is expected to increase iron ore output by between 3 and 3.5 per cent, he added.
“That’s why we believe Brazil will have a bigger impact on iron ore markets in 2022 given the supply increase is expected to be far more substantial,” he said.
......
These factors combined could mean bad news for the Australian economy given the iron ore boom has given it a considerable boost after the knock it’s taken from the pandemic and lockdowns.
https://www.news.com.au/finance/economy/...2412cdf1cb
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