Three Mining Giants Together Said Iron Ore Shipments Decline Iron Ore Prices To Rise Again?

BHP billiton today announced its business report for the third quarter of its fiscal year (January-March 2022), with iron ore shipments down 8% from the previous three months. Previously, Vale and Rio Tinto reported that iron ore production and sales declined to varying degrees, the world's three major mining giants have said that iron ore shipments decline, does it mean that iron ore prices will usher in a new round of rising?

Brazil and Australia are the world's biggest producers of iron ore, accounting for more than half of the world's reserves and output, and most of the ore is in the hands of three big iron miners, creating an oligopoly. As the world's largest importer of iron ore, China is heavily dependent on Brazil and Australia for its iron ore, meaning that the lifeline of China's iron ore is held by BHP billiton, Rio Tinto and Vale.

The supply of iron ore has shrunk to varying degrees, according to the latest quarterly reports from the big three. According to Orient Securities' forecast of the iron ore market in 2020, the output growth rate of the global iron ore market in 2022 will be around 3.2%.

China imports accounted for more than 70% of global imports of iron ore, iron ore prices will directly affect China, combined with domestic steel mills and production, also increased the demand for iron ore, downstream of the current market demand is not clear, however, if the downstream demand is reduced, steel prices stabilized, iron ore price nature also don't need to worry about.