BHP in latest annual report said “Iron ore demand and prices rose to record highs during 2021 as China’s imports remained well above one billion tonnes while consumption in the rest of the world largely recovered to pre-COVID levels. Global scrap generation and consumption also regained their pre-pandemic volumes, but significant incremental high-cost iron ore supply was required to balance the market. The monthly average Platts Index for 62% iron fines converted to a free on board basis rose by 45% (from $101/dmt in 2020 to $147/dmt in 2021 in nominal terms) year on year in order to incentivise the seaborne supply response.”BHP said “The steel intensity of the global economic recovery also lifted steel prices and steelmaking profitability across regions to record levels, and global crude steel production grew by almost 100 million tonnes year on year – one of its largest absolute annual increments in history to an unprecedented total of almost two billion tonnes. Steel output in Europe and North America rebounded by 16% and 19% year on year, respectively, and exceeded pre-pandemic levels in India, ASEAN and the Middle East.”BHP added “On the seaborne iron ore supply side, the major producers maintained their 2020 aggregate shipments, but volumes remained below those delivered in the 2018 calendar year (pre-Brumadinho tragedy) for the third consecutive year. The demand and price premiums for iron ore concentrate and pellets were supported by the recovery in ex-China steel production as steelmakers in developed regions responded to record margins by seeking to ramp up capacity and boost productivity using high-quality raw materials.”
BHP in latest annual report said “Iron ore demand and prices rose to record highs during 2021 as China’s imports remained well above one billion tonnes while consumption in the rest of the world largely recovered to pre-COVID levels. Global scrap generation and consumption also regained their pre-pandemic volumes, but significant incremental high-cost iron ore supply was required to balance the market. The monthly average Platts Index for 62% iron fines converted to a free on board basis rose by 45% (from $101/dmt in 2020 to $147/dmt in 2021 in nominal terms) year on year in order to incentivise the seaborne supply response.”BHP said “The steel intensity of the global economic recovery also lifted steel prices and steelmaking profitability across regions to record levels, and global crude steel production grew by almost 100 million tonnes year on year – one of its largest absolute annual increments in history to an unprecedented total of almost two billion tonnes. Steel output in Europe and North America rebounded by 16% and 19% year on year, respectively, and exceeded pre-pandemic levels in India, ASEAN and the Middle East.”BHP added “On the seaborne iron ore supply side, the major producers maintained their 2020 aggregate shipments, but volumes remained below those delivered in the 2018 calendar year (pre-Brumadinho tragedy) for the third consecutive year. The demand and price premiums for iron ore concentrate and pellets were supported by the recovery in ex-China steel production as steelmakers in developed regions responded to record margins by seeking to ramp up capacity and boost productivity using high-quality raw materials.”
