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According to Mysteel.com, China's goal of achieving 45% self-sufficiency in steel raw materials, including iron ore and scrap by 2025, is difficult, but could be achievable if the country's scrap steel production continues to grow steadily.
This goal was mentioned in the draft guidance on improving the quality of the steel industry issued by the country's Ministry of Industry and Information Technology (MIIT) on the last business day of 2020, and the document will be under public review and feedback until January 31st.
To accomplish this task, MIIT proposed in the project "to develop one or two foreign projects for the extraction of iron ore with economic efficiency and global influence in order to increase the country's self-sufficiency from the total volume of imported iron ore to 20%." First of all, this refers to the African iron ore project Simandou.
According to Xu Xiangchun, senior analyst at Mysteel, so far, "China's domestic iron ore resources are quite limited, and at least 80% of iron ore consumption depends on imports, sometimes up to 90%, mainly from Australia and Brazil." The chances of increasing the annual supply of scrap steel to the domestic market to about 300 million tons from over 200 million tons are now much higher. In 2019, China consumed 240 million tonnes of scrap steel in its steelmaking industry, with almost all of this coming from domestic sources.
