Due to the relative scarcity of domestic iron ore resources and the predominance of imported ore in price, the share of domestically produced iron ore resources in steel production is relatively low, so the demand for imported iron ore remains high. According to the forward-looking database data, as of November 2016, China’s iron ore and concentrate imports totaled 935 million tons, the cumulative increase of 9.19%.
This year the domestic iron powder production has declined significantly, the domestic mining operating rate continued to decline. But by the second half of this year, ore prices continue to rise in the impact of the rebound, the domestic part of the closure of the mining enterprises began to make ready to resume production of the will continue to increase. If the price of iron ore can be maintained at 70-80 yuan / ton, is expected next year, the domestic mine production rate will continue to increase.
As China’s steel industry into the “incremental, expansion” to “reduction, adjustment” stage of development, from the long-term point of view, China’s iron ore demand is in a turning point in the downstream channel, but the import mine is and will China’s iron and steel industry is the most important long-term strategic guarantee, domestic mines can only be an effective supplement as imported ore, played a role in regulating the base. Therefore, China’s iron ore resources development strategy should be “the development of generation, reserve generation, exploration generation”, thus ensuring the continuity of iron ore resources.