Iron ore prices hit new high

Chinese steel production is breaking records, which automatically affects the price of iron ore. Economic data showed that the country's steelmakers produced 1 billion tonnes of steel in 2019. This is the second record year in a row.

China's import price of 62% iron ore rose to $ 97.58 /t, a 6-month high and 6% YTD.

China produces more crude steel than the rest of the world combined, reaching 996.3 million tonnes in 2019, up 8.3% from the previous year, according to government data. Steel companies produced an average of 2.7 million tonnes per day during December, which is 12% higher than in December 2018.

Steel production in China rose nearly 10% from a year earlier to 1.2 billion tonnes in 2019. The China Metals Association said last week that it expects domestic steel demand to rise slightly in 2020 to around 890 million tonnes.