Chinese steel players are contemplating reduction of iron ore imports and increasing investment in mines in Africa and Mongolia to secure resources. The country also plans to increase the capacity of its domestic iron ore resources.
China’s steel firms import around 80pc of iron ore which makes it the largest consumer in the world.
China is likely to increase iron ore processing capacity and improve resource utilization. They are also planning to effectively decrease production cost of steel companies and increase the vitality of developing the steel sector in China. Fiscal policies, taxes and other supporting policies have been issued by the country.
Meanwhile, Australia’s exports to China have reached a new high even as diplomatic disputes between the countries escalated. Australia’s total iron ore export reached AU$102.1bn ($73.56bn) in the 12-month period. China accounted for 87pc, a preliminary report in July indicated.