An Analysis of Global Iron Ore Resource Market Trend in the Post-COVID-19 Period

ABSTRACT

Iron is the most widely used metal in China. There have been many changes in the international iron ore market due to the covid-19. Analyzing the reasons for the changes in the international iron ore supply, demand and market structure and predicting the future trends are of great significance for the stable supply of iron ore. This paper first analyzes the global steel production, iron ore supply and price trends under the covid-19 and believes that the global iron ore supply and demand pattern is further concentrated, showing a pattern of "two countries, two 60%". That is to say, China's steel production will further improve its global share, approaching 60%;Australia's supply share in the global iron ore shipping market will further increase, approaching 60%, because of the covid-19. Secondly, this paper predicts the changing trend of China's and global steel demand in the next 2-3 years, and believes that the main reason for the increase in China's steel production in recent years is the country's need for stable economic growth. China's steel production will remain high in the next 2~3 years, but in the long run, China's iron ore demand will slow down after a period of time. Finally, this paper analyzes the global iron ore price trend and believes that the global iron ore price will rise and fall to less than 100 US dollars/ton in the fourth quarter of 2020. The iron ore price will slowly fluctuate and fall down to 60~80 US dollars/ton in the next 2~3 years. © 2021, Science Press. All right reserved.