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In comparison, the record production of 684.3 million tons in 2011 was almost four times that of a decade ago . During this period, due to the inability of domestic iron ore production to meet the demand of steel mills, China's iron ore imports reached 687 million tons, six times that of a decade ago .
Most of China's imported iron ore and coking coal are carried by large-scale sea-fish type bulk carriers, and the ship type market has already exceeded supply, and the capacity is seriously surplus. According to the latest report of the exchange, the market freight rate is going to the lowest point in the first half of this year. It can be seen that the rising market demand is the only life-saving straw for saving the Capesize shipowners.
China's economic growth slowed down, and domestic consumer demand fell, eventually leading to weak steel demand. This means that China's steel export market may be slightly better. In 2011 , the export volume reached 48.4 million tons, and most of the export pallets were smaller bulk carriers.
The sluggish demand for iron ore in China has caused iron ore prices to be unloaded this year. Some market analysts pointed out that the further decline in iron ore prices and the shrinking production may lead to unprofitable or even loss of local Chinese mines, which will actually increase the demand for Chinese imports of foreign iron ore.
The Chinese steel industry should be able to cope with any shock. According to the latest data released by the Norwegian Bank ( DNB ), the inventory of iron ore in China's ports this week was 98.8 million tons.
Recently, the official website of China Iron and Steel Association announced that China's steel output in 2012 is expected to fall by 0.7% year-on-year , hitting 678.7 million tons, the first drop in the past 30 years. Although the 0.7% decline is relatively small, it will be bad news for dry bulk ship owners who are increasingly dependent on China's steel production demand for raw materials.