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On January 14, data released by the General Administration of Customs showed that China imported 1.17 billion tons of iron ore in 2020, a year-on-year increase of 96.746 million tons, an increase of 9.5%. This exceeded the previous record-1.075 billion tons in 2017. Last year, the corresponding amount of imported iron ore was 822.87 billion yuan, an increase of 17.4% year-on-year and also a record high.

According to data from the China Iron and Steel Association (CISA), the average import price of iron ore in 2020 is US$101.7/ton, an increase of 7.3% from the US$94.8/ton in 2019.

China's iron ore imports have soared, reflecting the strong demand in the downstream steel market. It is estimated that China's crude steel production will exceed 1 billion tons for the first time in 2020, reaching 1.05 billion tons, accounting for approximately 60% of global crude steel output.

China's steel consumption in 2020 was 983 million tons, an increase of 9.6% year-on-year, surpassing China's steel production record. The steel industry has played an important role in supporting the rapid recovery of China's macro economy.

According to CISA statistics, China imported 20.233 million tons of steel last year, a year-on-year increase of 64.4%; exported 53.671 million tons of steel, a year-on-year decrease of 16.5%.

Iron ore is an important raw material for steel. More than 80% of the iron ore required by the Chinese market is imported. Australia and Brazil are the main importers. Iron ore imports from these two countries accounted for more than 60% and 20% of China's total imports, respectively.

Global steel consumption is expected to be 1.747 billion tons in 2020, a decrease of 2.5% year-on-year. In addition to the slight increase of 1.7% in steel demand in Asia, the Middle East, North America, and Africa all experienced double-digit declines. China's steel demand in 2021 is expected to be 991 million tons, a year-on-year increase of 1%.