Iranian iron ore Dilemma

Iran "Financial Tribune" reported on November 12, due to the decline in Chinese demand for iron ore prices from 2011--2013 year highs fall. November 2, China iron ore import prices fell 62% purity $ 48.6 / ton. Singapore Commodity Trading Fund predicted that the Chinese steel overcapacity, decline in demand for iron ore, iron ore prices may drop further to $ 40 / ton, close to the 2014 second quarter, $ 34 / ton low.

Iranian iron ore ailing Iranian iron ore production and Exporters Association officials Deh Rani (Keyvan JafariTehrani), said the only way to ride out the storm Iranian iron ore producers is to reduce production and transportation costs. He warned that the decline in demand for iron ore, Chinese steel overcapacity Iranian iron ore producers are not the only threat. He added: "2015 China's steel production was 811 million tons, by 2018 China will be reduced to 745 million tons of steel producers to export at least 80 million tons of steel per year, we can infer that although China's steel production fell, but. Iranian iron ore demand is still there. "

China is trying to cut steel production costs, which means that they will use a cheaper 55% purity iron ore, which is the Iranian iron ore producers to offer quality. Deh Rani said: "The cost of Brazil, Australia and transportation of iron ore to China is about $ 5 / ton, but the cost of Iranian iron ore shipped to China of $ 10 / tonne." He said, "Iraq calendar year (ending March 20, 2016), Iran's iron ore exports are unlikely to over 15 million tons. "2014 Iran has exported 22 million tons of iron ore, is the world's ninth largest exporter of iron ore. (West of the Shinkansen)