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Iron ore mine closures: domestic price premium puts less Chinese supply at risk


Iron ore mine closures: domestic price premium puts less Chinese supply at risk

Report summary

Our revised view of Chinese capacity at risk of closure is 33 million tonnes lower than previous estimate, reflecting an unanticipated price premium for local ore suppliers. With 33 million tonnes of Chinese production 'back in cash', some imported iron ore has to be displaced instead. Looking at the margin curve of all supplies to China shows Australian juniors and Iranian supplies are at most risk of closure.

What's included?

This report includes 1 file(s)

  • Iron ore mine closures: domestic price premium puts less Chinese supply at risk PDF - 314.28 KB 4 Pages, 0 Tables, 5 Figures

Description

This Metals Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

For industry participants and advisors who want to look at the trends, risks and issues surrounding this topic, this report gives you an expert point of view to help inform your decision making.

Our analysts are based in the markets they analyse and work with high-quality proprietary data to provide consistent and reliable insight.

We provide unique in-depth analysis of the metals supply industry so you can make confident strategic decisions.

  • Executive summary
  • China domestic prices are attracting a premium over seaborne prices
  • Less Chinese production losing money than previously thought
  • Who might be displaced from the seaborne market?
    • China iron ore supply margin curve - exports to China and domestic production

In this report there are 5 tables or charts, including:

  • Executive summary
  • China domestic prices are attracting a premium over seaborne prices
    • Local price premium over import iron ore
    • Prices of Inland provinces are more sticky
  • Less Chinese production losing money than previously thought
    • Chinese iron ore margin curve
    • Chinese iron ore production with negative margins
  • Who might be displaced from the seaborne market?
    • Iron ore mine closures: domestic price premium puts less Chinese supply at risk: Image 5
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