In the past three months Chinas iron ore imports have climbed 20 per cent year on year while year to date they are up 11 per cent compared to the previous year.
The project would be a major step toward South Australias goal of securing A10 billion 7 7 billion of investments to fund a stable of new iron ore mines by 2021 China Railways partner Iron.
The geochemical analysis also showed that the deposit contained a very good metal grade iron ore with an average composition of 2 55 PPM of magnetite and also an average composition of 1 6PPM.
Guy Le Page director and responsible executive at Perth based financial services provider RM Corporate Finance told Stockhead in May that a lot of analysts are not bullish on iron ore and that theyd underestimated the recovery in China.
And it was only in late August that Le Page pointed out market forecasters had started playing catch up.
Mark Eames non executive director of emerging South Australian iron ore producer Magnetite Mines ASXMGT agrees saying market observers had missed the mark on both the demand and supply front.
Weve been talking about the same theme for the last 18 months which is that observers have tended to be quite pessimistic about Chinas prospects in iron ore he told Stockhead.
A lot of people were forecasting that iron ore prices were going to fall from where they were 18 months ago and in fact theyve almost doubled.
Eames said demand had risen from around 800 million tonnes up until mid 2017 to about 900 million tonnes in 2018 before hitting close to a billion tonnes last year.
Iron ore arrivals at Chinese ports rose 520 000 mt on week A total of 93 vessels carrying 14 1 million mt of iron ore arrived at major Chinese ports during August 30 September 5 SMM estimates This was up 520 000 mt from the prior week and 3 25 million mt from the same period last year.
The market for pig iron is not dominated by China unlike the iron ore market and pig iron has fetched about US290 to US410 a tonne over the past two years Reedy is also looking at the potential to use biomass as a substitute for coal in the proposed smelting process with a view to making green pig iron and achieving net neutral CO2.
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