China's dependence on iron ore imports will be 80 percent in 2015

Iron ore imports to China will exceed 80 percent of total consumption in 2015, and iron ore prices will range from $ 70 - $ 100 per tonne, the China Metallurgy Planning Research Institute predicts.

China's steel demand in 2015 will amount to 720 million tons, up 1.41 percent year on year. Meanwhile, demand for iron ore is expected to be at 1.157 billion tonnes, up 1.67 percent year-on-year, as forecast. In terms of production, China's steel output is expected to reach 834 million tonnes in 2015, up 1.71 percent from 2014.

The institute also predicted that Chinese demand for imported iron ore in 2015 will continue to grow, reaching 80 percent from 77.5 percent of consumption in 2014. Due to the slow recovery of the global economy and changes in the structure of the Chinese economy, China's economic development is facing multiple difficulties this year, which are reflected in a sharp drop in industrial production growth, declining consumption in the real estate market and weak demand for steel in various business areas.

The institute provided a more optimistic outlook for steel and iron ore demand in 2015, saying that while demand is unlikely to rise significantly, new momentum is expected to be created. He expects iron ore prices to hover between $ 70-80 per tonne and could slide below $ 60 per tonne at some point, but it cannot stay that low as it could lead to losses for small and medium mines and even to their closure, which will ensure a rise in prices.