Why would China buy Australian ore instead of Mongolian iron ore?The reason is all too real

2022-07-19 0 By

China’s demand for steel is very large, steel smelting can be used in a number of infrastructure projects in China, such as the construction of railways, the construction of high-rise buildings, need to use steel this raw material.And to smelt steel, then need to use iron ore this material, most of our iron ore comes from Australia.At this time many netizens began to question, Mongolia’s iron ore resources are also very rich?Why would China buy iron ore from Australia rather than Mongolia?If everyone knew why, it was “too real”!In addition, the political relationship between China and Australia is quite tense recently, and Australia’s behavior of continuously raising the price of iron ore for no reason has led to the continuous increase in the cost of China’s iron ore procurement, which is far more than expected.China is not on the chopping block and is actively seeking other new iron ore partners.Who is it?Here we go.In 2021, China’s GDP exceeded 114 trillion yuan, making it the world’s second largest economy.China’s rapid economic development, infrastructure construction is also keeping pace with the pace of national planning, to build railways, building buildings, and so on, steel is a raw material.To make steel, it takes a lot of iron ore.Many netizens said that China is a vast country with abundant resources, so there should be plenty of iron ore waiting to be mined.It is true that China has vast territory and abundant resources and has a lot of iron ore, but the iron ore in China has been proved to be lean iron ore.That is to say, even if our country spends huge manpower, material resources, financial resources to mine these iron ore.In the end, the quality of the iron ore mined is not up to standard, no doubt a waste of effort.Since China is not self-sufficient and needs a lot of iron ore, it needs to rely on imports.According to statistics, China’s iron ore imports in 2021 amounted to 800 billion yuan.The input of imported iron ore is very necessary. If China wants to move its economy to a higher level, infrastructure construction related to economy and people’s livelihood should not be held back.To keep pace with the country, infrastructure projects need to solve the problem of importing partners early.Mongolia, which is relatively close to China, is very rich in iron ore resources, but Mongolia does not belong to one of China’s iron ore importers. Instead, It is Far from China’s Australia, which is the largest importer of iron ore in China.Why did China buy iron ore from Australia instead of Mongolia?Mongolia is located in the inland between China and Russia, and mineral resources are very rich, it can be said that Mongolia has taken the advantage of the “right place at the right time”.However, the reason why Korea does not buy Iron ore from Mongolia is that the people of Mongolia have not kept pace with them.Mongolia is rich in iron ore, but lack of mining capacity, low production capacity.Even Mongolia can’t produce enough iron ore for its own use, so how can it export it to other countries?Add Mongolia to mine out of iron ore, only for raw ore.Because Mongolia does not have the iron ore sorting and preliminary processing technology, that is to say, even if Mongolia has excess iron ore can be exported to Our country, Our country also needs to bear the initial processing of iron ore this large cost.In addition, Mongolia is a landlocked country, if you want to export transport to Our country, it can only be transported by land, land transport costs are high, and Mongolia’s railway construction process lags behind, railway transport volume is far from being able to withstand the huge demand in Our country.In addition Mongolia perennial cold attack, railway transport is likely to break off the situation.Mongolia’s unstable supply of iron ore, coupled with the high cost of iron ore procurement, in business terms, China’s reasons for not buying Mongolia, although “too real!”But it’s absolutely understandable.Three, to buy Australian ore?You can guess by now why you bought Australian iron ore rather than Mongolian iron ore.First, Australia is extremely rich in iron ore resources and the mined iron ore is of high quality.Second, Australia has a long history of iron ore mining with more mature technology and a complete set of mining system. The capacity of Australian iron ore can meet the huge demand of China.Third, Australia has the ability to conduct preliminary treatment of iron ore, so that after exported to China, China can directly use iron and steel smelting, without paying the cost of preliminary processing of iron ore.Fourth, Australia uses water transportation to transport iron ore raw materials to China. Compared with land transportation, the cost of water transportation is much lower, which undoubtedly greatly reduces the procurement cost of imported iron ore raw materials in China.Therefore, China seems to be willing to buy Australian iron ore, but in fact, it has greatly reduced the cost of China’s import of iron ore.But recently, perhaps China and Australia in the iron ore cooperation is coming to an end, based on certain political positions, China and Australia are in a tense political relationship.The Australian government, recognizing China’s dependence on imported iron ore, raised the price of iron ore exported to China again and again with iron ore raw materials as a condition of coercion.China is really contemptuous of Australia’s behavior. China is not a “meat on the chopping block” to be slaughtered, let alone a leek waiting to be cut.China has long been looking for new iron-ore exporting partners, and now there is good news.China is about to sign a cooperation agreement with Brazil-based Vale. In order to avoid the situation like Australian iron ore, China has also put forward certain restrictions on the cooperation between the two parties.New suppliers of iron ore were found, complemented by growing domestic capacity to recycle steel waste.I believe that in the near future, China’s import of iron ore raw materials procurement costs will further decline, the dependence on imported iron ore raw materials will gradually weaken.Iron ore is so important that any country can understand it.In particular, China is in the situation of rapid economic development, without investment in infrastructure, infrastructure construction needs iron and steel to complete, and iron and steel smelting needs to use iron ore raw materials.Most of the domestic poor iron ore, mining significance is not much, and Mongolia iron ore and because of the high cost of land transportation, do not have the ability to preliminary processing iron ore and other reasons, will lead to China’s import iron ore costs soared.In contrast, Australian iron ore has a sound mining and processing system, coupled with direct water transport to China, obvious advantages.Unfortunately, the Australian government did not cherish the opportunity of cooperation and kept raising prices to intimidate China, so China had to seek new partners.In the future, the purchase of iron ore from Australia will also be significantly reduced.I believe it will also have a lot of negative impact on the Australian economy, what do you think?