Taking May as an example, the national crude steel output increased by 10% year-on-year to reach 89.09 million tons, once again creating a record high in single-month production. The increase in arrogance has reached 10% of crude steel production, and it is necessary to increase the supply of iron ore raw materials. However, data for May showed that China’s iron ore imports were down, down 11% year-on-year.

Careful resolution of the amount of imported ore from Australia and Brazil shows that the shipment of Brazilian iron ore decreased by 18.8% in the same month, of which the shipment volume of Vale was nearly 28%, and the shipments of overseas mines continued to fail to return to normal levels. An important reason for the tight supply of iron ore in May. It is this gap between supply and demand that led to a sharp rise in the price of minerals in May. The Platts price index returned to the $100 era, during which the highest increase was over $14, rising to over $100/ton, a five-year high.

Even in June, this tight balance between supply and demand has not eased. Statistics show that crude steel production has exceeded 10.7 million tons per week for seven consecutive weeks. As of June 21, the main port iron ore inventory was 117.52 million tons, which is the seventh consecutive week of port inventory decline, if compared with the inventory high of nearly 15,000 tons on April 5 of the year, in 2 During the month, port stocks fell by more than 30 million tons.

Obviously, the supply and demand logic is the core to support the surge of iron ore. The sharp decline in the profit level of steel mills was mainly due to the surge in production of steel companies, which led to the return of profit levels. Cai Yongzheng, director of the investment department of the Securities Department of Nanjing Iron and Steel Co., Ltd. said: "The main reason for the increase in iron ore prices this year is the sharp increase in steel mill demand, while the supply side has been greatly reduced due to sudden variables such as the Brazilian mine disaster and the Australian hurricane. The supply and demand ends are reduced by one. Increase, support and push up on iron ore prices."