The Chinese are still buying iron ore and their iron ore stockpile is at a 3 year low. Despite the problems in the Chinese economy with property losses and COVID hangovers, their economy is still powering along, seems like a ramp-up in their EV industry is making up for losses in steel demand elsewhere.
I think their railway-building has slowed down a little, but it's still ongoing. However, their sagging property market has reduced the demand for steel in building construction.
But they're spending lots on energy projects and shipping and manufactured metal exports are increasing, so the net effect is little difference in steel demand and use for China.
China takes nearly all our scrap here and demand is steady. Iron ore prices have been forecast to fall to US$85 tonne for the last couple of years - but it hasn't happened.
Iron ore prices rose 4% last week and are around US$117 tonne. This is doing wonders for our economy and for the iron ore miners profits, they don't know what to do with their money, they'll need a Scrooge McDuck sized money bin before long.
I can't see much downside to iron and steel prices - new steel here is like gold, you just about need an armed guard for it!
I cannot believe the prices for it, the cost of steel buildings here has nearly doubled in under 4 years.
Growth of steel exports over Jan Aug exceeds output growth China's domestic steel demand remains largely steady in 2023 Robust steel exports from China have emerged as a major driver supporting steel
www.spglobal.com