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Thursday, 28 September 17
CHINESE GOVERNMENT TO CANCEL DOMESTIC IRON ORE MINING RIGHTS - JEFFREY LANDSBERG
CommodoreIt has been reported that China will cancel roughly one third of its iron ore mining licenses, says Commodore Research & Consultancy in its latest e-mil note.

According to Jeffrey Landsberg, Managing Director of Commodore Research & Consultancy, Commodore Research views this is as a very logical decision where iron ore procurement and environmental regulations are concerned.  As discussed in Commodore Research & Consultancy's  Weekly Dry Bulk Report and Weekly China Report published at the start of this week, Commodore has remained of the view that Chinese iron import volume has been poised to stay strong even with the recently announced steel production cuts (that have been enacted due to environmental concerns).

It remains our view that the usage of domestic iron ore (which is of much lower quality than iron ore imports) has been set to come under pressure rather than the consumption of iron ore imports, says Commodore.

Commodorefurther noted that, securing high quality iron ore is now more important than ever in China, even with temporary steel production cuts looming, and Commodore Research has remained bullish for iron ore import volume prospects.

The decision by the central government to cancel a third of iron ore mining rights has strengthened our conviction even further, Commodore Research & Consultancy concluded.


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