Analysts see long-term price support for steel production

With iron ore prices topping US $ 100 /t CFR in China for the first time this year, reaching their highest level since early 2014, leading analysts see an opportunity for China's steel production to increase in April to over 1 billion tonnes on an annualized basis.

Brazilian iron ore cutbacks at Vale are limiting supply of the world's largest producer of raw materials to meet growing demand in Asia, even as European demand is slowing due to rising costs of steel production and the continuing fall in steel prices this year, leading to reduce operating profit.

Iron ore prices will hit triple digits for some time as steel production growth in China requires more offshore iron ore amid lower production in Brazil, Jim Lennon, founder of Red Door Research in London and a Macquarie Bank consultant, predicted Thursday. ,

S&P Global Platts on Friday valued the underlying TSI IODEX 62% iron ore at $ 100.40 /dmt CFR North China, up $ 2.40 from Thursday. This year the price is up $ 28.05, or 39%.

Lennon said China's 2019 crude steel production forecast of 50 million tonnes, up from 927 million tonnes in 2018, would be enough to significantly boost iron ore import base prices. London.

The rebound in steel production in China after a slowdown in Q4 2018 came during an uncertain supply from Brazil following a production cut in the past few months.

Vail saw iron ore mining and processing in southern Brazil suffered in both volume and market quality following the closure of the complexes following the collapse of the Brumadinho tailings dam in January.

Safety reviews have slowed iron ore operations at several other companies in the region. Stricter environmental protection measures and mining reforms in China mean that a limited supply of iron ore domestically could balance the market and insufficient quality coking coal to meet demand without sustainable imports, said Neil Bristow, managing partner at H&W Worldwide Consulting.

Bristow said at a conference in London that logistics restrictions in Australia and other ports, as well as limited supply expansion, have supported coking coal spot prices, which are still fueled by continued strong imports to China.

Previously, he led BHP Billiton's market analysis of raw materials from the Asia-Pacific region and worked closely with the coal and coke industries, leading major industry conferences where