Domestic iron ore supply capacity is steadily increasing

At present, various discussions on iron ore negotiations in 2010 have once again heated up.

Vale will raise the price of iron ore by 90%. It will once again push the Chinese and foreign iron ore negotiations to the front desk. It is worth noting that the Ministry of Land and Resources, which is in charge of the country’s mineral resources, recently released news that domestic iron ore production has reached 880 million tons in 2009, and domestic iron ore supply capacity is steadily increasing steadily.

Last year, the domestic production capacity has reached 880 million tons According to media reports, the China Iron and Steel Association (hereinafter referred to as “China Steel Association”) executive vice president Luo Bingsheng confirmed at a meeting in Tangshan, Hebei Province, on the 19th that Brazil’s mining giant Vale In the ore negotiations, the iron ore benchmark price in 2010 was raised by 90% to 100%.

In Beijing, which is about 200 kilometers from Tangshan, there was also a meeting on the same industry, the Ministry of Land and Resources, the National Iron Ore Prospecting and Exploitation Major Reporting Meeting.

At the meeting, the Ministry of Land and Resources announced some major breakthroughs in iron ore prospecting in recent years: Accumulative iron ore reserves of nearly 100 have been identified in iron ore concentration areas in Liaoning Province, including Anbu, Liaoning, Shandong, Zhangzhou, Panxi and Anhui. Billion tons. Among them, the Daxigou Iron Mine in Benxi, Liaoning, controls 3 billion tons of reserves and has a long-term prospect of more than 7 billion tons. Although the mine has a large depth, it is easy to pick and choose.

In addition, a number of new iron ore prospects have been opened in the western region of China.

According to sources from the Ministry of Land and Resources, in recent years, China's iron ore resource supply capacity has increased significantly. The output of iron ore primary ore has increased from 260 million tons in 2003 to 880 million tons in 2009, and the domestic iron ore self-sufficiency rate has steadily increased.

According to the Ministry of Land and Resources, the iron ore design capacity under construction and planning and construction is 480 million tons per year. With the commissioning of these new mines, the domestic iron ore supply capacity will continue to increase steadily.

As for the “building and planning and construction” of 480 million tons/year iron ore production capacity will be able to play a profit, an industry source said that this mainly depends on the progress of the development of mining enterprises, if the import of foreign iron ore prices are higher, The desire of domestic mining companies to increase production will be stronger. On the contrary, if the price of imported iron ore drops, the enthusiasm of the mining enterprises to increase production will decrease.

The analysis from the General Administration of Customs also showed that in the first half of 2009, due to the sharp decline in spot ore prices, domestic mines once drastically reduced production, and the area for the suspension of small and medium-sized mines reached a maximum of almost 70%. As of last October, the operating rate of domestic mines was still biased. low.