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The steel industry was small and sparsely populated at the start of the twentieth century and during both world wars. Most of the steel infrastructure was destroyed during the wars, and were using Soviet technologies. China lagged behind the western countries in its steel industry development even though they were using central planning techniques during the early days of communist rule.
Chinese steel mills facing a slump in profit margins are scrambling for lower grade iron ore to cut costs, squeezing supplies and halting a longstanding market trend toward higher grade ore.
Prices of 65% ironcontent ore for delivery to China hit a fiveyearpeak of a tonne on Thursday, while its premium to benchmark 62% ore widened to fivemonth highs.
#0183;#32;Australias two biggest iron ore producers have been called in for a dressing down by Chinas peak steel industry body amid rising concerns Chinas action against Australian metallurgical coal
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Graphic: China crude steel production vs steel margins (/2HRJEsH)Four other mill managers said their iron ore inventory had dropped to less than 15 days of use, lower than the normal
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#0183;#32;Iron ore futures rose on Friday, with the Dalian benchmark marking its biggest weekly gain since earlyAugust, as shrinking steel inventories at mills in China
China: Rising iron ore prices weigh down steel mill profitability in Commodity News 08/04/2019 Iron ore prices continued an upward trend in recent months as overseas mine accidents disrupted supplies.
The premium Chinese steel mills are willing to pay for highgrade iron ore has widened in recent months, suggesting both a recovery in profitability and a desire to maximize output at blast furnaces.
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