Is China stockpiling Australian iron ore?

China’s still buying huge amounts of Australian iron ore, and in the first five months of the year snapped up 444.9 million tonnes. Over 2020, China bought 81 per cent of all the iron ore Australia shipped overseas.

Is China stockpiling iron ore for war?

Analysts also said China has been stockpiling huge amounts of the commodity, possibly for military use although that would only account for a fraction of what is being used. Still, many observers believe China can only tolerate high iron ore prices for so long, meaning Australia’s cash cow will not last forever.

How much does China rely on Australian iron ore?

China relies on Australia for 60 per cent of its iron ore imports. This represents about 70 per cent of Australia’s iron ore production. The Beijing report states Australia relies on China for 30 per cent of its processed steel. But exports to Australia represent just 1 per cent of China’s output.

Who does Australia sell iron ore too?

produces to China, Japan, Korea and Taiwan. China accounted for 82 per cent of Western Australia’s iron ore exports in 2016-17, followed by Japan (9 per cent), Korea (6 per cent) and Taiwan (2 per cent). China rose 5 per cent to 666 million tonnes. Japan fell 6 per cent to 69 million tonnes.

What would happen if China stopped buying Australian iron ore?

“First, it would mean too big a disruption to the Chinese economy.” Iron ore imports from Australia are worth $85 billion annually, and so far, the agricultural imports hit by China’s tariffs and bans are worth just $6 billion, he said. “China would not be able to make up its iron ore needs from other sources.”

What is China doing with Australia’s iron ore?

Tokyo | China will boost domestic iron ore production by 30 per cent, significantly ramp up investments in overseas mines and strengthen scrap steel recycling under a plan designed to break Beijing’s dependency on Australia’s most valuable commodity export.