The world's second largest iron ore producer Tamsui River Valley said that although there is uncertainty, it is still optimistic about the prospects of the Chinese real estate industry; and said that with the rise in China's affordable housing investment, the prospects are even more encouraging.
According to Bloomberg News on Wednesday (September 6), Marcello Spinelli, Vice President of Tamsui River Valley Iron ore business, posted a briefing on the company's official website that although the company's largest customersFacing the challenge, but the Tamsui Valley believes that there is reason to optimize the prospects of steel demand.
It is reported that although the real estate market in China has been in trouble, the price of iron ore has unexpectedly show toughness in the past few months.Singapore Iron ore Futures Tuesday (September 5) touched the highest level since April.The real estate support policy released by China has encouraged investors to avoid breach of contract.
Tamsui River Valley also mentioned in the briefing that as China ’s affordable housing investment rises, the prospects are even more encouraging.Sipinelli pointed out that the capacity utilization rate of Chinese steel plants is high, and iron ore and steel inventory are low.The Danshui Valley expects that steel output will rise in 2024.
Briefing also said that in the long run, China continues to promote the growth of urbanization, other emerging markets, including Southeast Asia, and green steel incentives and new energy infrastructure investment in developed regions.Support demand.It is estimated that by 2030, Southeast Asia's steel production capacity will double.
Bloomberg pointed out that the performance of large miners has internal connection with the demand of Chinese commodities, and iron ore is particularly susceptible to changes in the real estate industry.
Mike Henry, CEO of BHP Group, the world's largest comprehensive mining company, said last month that China's prospects were "uncertain".The company reiterated in the annual report that the performance of iron ore during the current period will depend on the effectiveness of China's stimulus policy, especially the real estate industry.
