China is vast and rich in mineral resources. However, since China is the world’s largest industrial country and consumes huge resources, some of its mineral resources need to be imported.
Regarding the iron ore and coal resources commonly used in China’s industry, although the total resources are very rich, they have to rely on imports from other countries due to the difficulty of mining and quality problems. Because the supply has been restricted by other countries for a long time, it is often in a passive position. Once Australia or Brazil cannot keep up with the supply, iron ore will get stuck!
Australia is known as “a country sitting on a minecart”. The importance of coal exports to the country is self-evident, and China is an important customer of Australian coal. Since this year, China has imported coal from Australia is almost zero, and many ships which carrying coal from Australian have been turned away.
You know, China is the world’s largest coal importer, with a total import volume of 303.39 million tons in 2020, rising for the fifth consecutive year. Therefore, after Australian coal lost the Chinese market, major coal exporting countries have come to “divide up” the market, such as the United States, which has always claimed to support Australia in Sino-Australian trade. Not only that, but the domestic steel industry has also continuously expanded its recruitment efforts. This time, Australia’s good days of taking advantage of China’s imports are coming to an end!
According to the latest news, from August 1st, Our country will increase the export tax rate on ferrochrome and high-purity pig iron to 40% and 20%. In addition, the Ministry of Finance of China also issued a relentless move. The export tax rebate of 23 steel products including cold rolled steel on the official announcement list will be cancelled from August 1.
At present, in order to promote the energy transition, the domestic crude steel output in the second half of the year will be controlled at about 502 million tons, which is a decrease of 61 million tons compared to the first half of the year. Limiting the production of steel also means a reduction in the demand for iron ore. China’s move It is also equivalent to “supporting” my country’s steel industry. Now China has lost interest in Australian coal.
On July 29, the China Iron and Steel Association made another big move: speeding up the development of domestic iron ore resources, increasing the self-sufficiency rate of domestic iron ore resources, and reducing external dependence. Coupled with China’s limited steel production, Australia’s iron ore demand will be greatly reduced, and its hundreds of billions of iron ore business will be hit.
In fact, Australia has long expected the end of the market. Australia’s wine industry, animal husbandry, and the study abroad industry have always been very dependent on China. However, during the epidemic, Australia continued to follow the United States to voice unfavorable voices against my country, which led to the development of these pillar industries in Australia. The collapse, and Australia is the country that resists “Huawei” and “China’s high-speed rail” the most, economic exchanges between Australia and China will only become increasingly difficult in the future.
China is the first country to resume work and production under the epidemic. China’s rapid resumption of work and production has quickly led to the stability of the Asian economy. After seeing this, even France, Germany and other European countries are constantly strengthening cooperation with my country. Australia has driven itself to a dead end
Post time: Jul-30-2021