3. Iron ore supply and demand in China

shallow and mainly of middle and small in reserve. They are mainly distributed in Guangdong, Guangxi, Fujian, Guizhou and Jiangxi Provinces. The reserves of proven deposits are

This includes mainly two deposits: the Bayan Obo and Shilu in Inner Mongolia and Hainan,

The Bayan Obo deposit is a world famous super-large iron-niobium-rare earth deposit with extremely rich minerals and elemental assemblages. However, due to the complexity of the iron deposit, there is no unified view on the origin of this deposit. Most believe that the formation and original deposition of iron ore associated with later hydrothermal fluid alteration, which means the iron ore was enriched by alteration on the primary ores. The mineral composition of the Bayan Obo mine is extremely complex. A total of 71 elements have been discovered and the mineral species have reached more than 170 species. There are five major ore bodies, with the iron deposits mainly occurring in the 8th member of the Bayan Obo

Shilu iron deposit in Hainan Province was hailed as "Asia's largest iron ore rich", and ore mineral is mainly hematite, associated with cobalt, copper and nickel. At present, there is no unified understanding of the ore-forming mechanism of Shilu iron ore deposit. Some argued that formation of Shilu iron ore is mainly due to multiple remodeling and enrichment that is, the formation of iron ore deposits is affected by "volcano-sedimentary metamorphism + structural transformation + hydrothermal". A total of 38 iron ore bodies have been found, most of which are yielded in the 6th layer of Shilu Group. The proven iron ore reserve has exceeded 450

Iron ore resources are distributed in a few countries and regions with high concentration. 75.6% of the world's iron ore reserves are distributed in Russia, Ukraine, Australia, Brazil, Kazakhstan and China. In general, there are more iron-rich mines in the southern hemisphere and less in the northern hemisphere [12]. Among the top 100 iron ore production projects in the world [13], 76 are related to BIF and the output of these 76 BIF-related iron ore projects also accounts for 87% of the world's iron ore production (Figure 1). The giant iron deposits in China are all BIF type and were yielded in craton. The largest one hosted about 4 billion tons of iron and was formed in Middle Archeozoic. However, it was low grade, whereas to the giant iron deposits abroad, they are various from skarn-related type, Kiruna type or magmatic type for the metallogeny. Besides, they are not restricted to Precambrian. For the tectonic back-

Among more than 2000 iron ore deposits identified, the contact metasomatic-hydrothermal iron deposits account for 39% of the total iron ore deposits, followed by sedimentary metamorphism (28%) and sedimentary (20%), weathered leaching (7%), volcanic (3%) and magmatic (3%) iron ore are in small numbers. However, most of the large iron deposits are characterized by

million tons and the grade is high (the average grade of iron ore is 51%) [11, 14, 15].

2.8. Comparison of major iron ore deposits from domestic and abroad

ground, they could develop on craton, as well as on active continental margin.

300 million tons, accounting for 0.5% of the total reserves of the country.

Group. Proven reserves reach 1.6 billion tons [7–10].

2.7. Others

6 Iron Ores and Iron Oxide Materials

respectively.

China's iron ore sources are mainly three parts, the first part from the domestic ore, the second part from the overseas rights and interests of ore and the third part from overseas imports of ore. From 2011 to 2015, the proven reserves of iron ore continued to increase. In 2015, the reserves of iron ore reached 20.76 billion tons (note: different from the US Geological Survey released 2015 reserves data, it is mainly caused by different iron ore units of measurement), a slight increase of 0.50% year-on-year. Since 2015, China's iron ore production has gradually declined. In 2016, China's iron ore production (including low grades) was 1.281 billion tons, down 7.27% year-on-year.

annual growth rate of 14.6%, and domestic iron ore is an important part of China's steel

The Chinese Iron Ore Deposits and Ore Production http://dx.doi.org/10.5772/intechopen.76729 9

Between 2003 and 2017, the average annual growth rate of China's iron ore output was about 18%. Meanwhile, the average annual growth rate of imported iron ore was 20%. The growth rate of imports was obviously higher than that of self-produced ore. Since 2000, China's iron ore imports, except a slight decrease in 2010, 2012 and 2015, increased substantially, the annual

By 2000, the major steel-making countries accounted for a relatively large amount of global imports. For example, Japan, the country with the largest import tonnage, accounted for an annual average of 28% in the world (Figure 4). Since 2000, due to the rise of China, the world's iron ore import pattern has undergone dramatic changes. China surpassed Japan in 2003 to become the world's largest importer of iron ore. The proportion of South Korea, Germany and Taiwan of China decreased slightly but little changed. The proportion of Japan was smaller; however, it is still the second largest iron ore importer in the world. In 2014, China imported 922 million tons of iron ore, accounting for 48% of the global output, 64.3% of the world's total iron ore imports and more than 70% of the global iron ore seaborne volume, and contributing to more than 90% of global iron ore consumption. In 2017, China's iron ore imports increased to 1.075 billion tons, which is 14 times of 2000. China is the world's most important iron ore consumer market and the world's largest spot market for iron ore. At this stage of relatively stable demand in Japan, South Korea, Germany and Taiwan of China, the proportion of imports from other countries is too small and China imports huge amount of iron ore, the changes in the demand for imported iron ore in China's iron ore market can approximately

production of raw materials.

import grew twice over 35%.

reflect the changes in the global iron ore spot market.

Figure 4. Iron ore imports/growth rate.

3.2. Analysis on iron ore import

### 3.1. Domestic ore production analysis

As China's crude steel production for many years running high, and more than 90% of the output is made of iron ore as a raw material contribution, resulting in huge demand for iron ore. While importing a large amount of iron ore, the output of China made iron ore is rapidly growing. Before 2000, China's iron ore output has been stable at an annual of less than 200 million tons (Figure 3). The output has continued to increase rapidly since 2001, with an annual output of 590 million tons in 2006 and a record high growth rate of 38%. During 2007– 2009, China's iron ore demand was strong and the supply of oversea deposits increased more rapidly. Although the total output amount of domestic mines continued to increase, its growth rate slightly decreased from the previous period. In 2010–2011, due to the 4 trillion yuan investment stimulating steel consumption in China and the rapid growth of international iron ore prices, historical records have been continuously refreshed. Many low-grade deposits, previously considered non-economic for mining, have also been gradually exploited. Domestic iron ore in 2011 reached 1.32 billion tons, an increase of 27%. After 2012, the growth of China's economy slowed significantly; however, the supply of oversea deposits continued to accelerate. Therefore the demand exceeds supply was gradually reversed. As a result, the price gradually dropped and the domestic high-cost mines were gradually squeezed out of the market. In 2012–2014, the growth rate of output of domestic iron ore decreased rapidly, and the output of in 2014 was 151,000 tons, an increase of 3.9%, although it slightly increased in 2016. In the past 16 years, China's domestic iron ore production increased 7.4 times, an average

Figure 3. Domestic iron ore production and growth rate.

annual growth rate of 14.6%, and domestic iron ore is an important part of China's steel production of raw materials.

## 3.2. Analysis on iron ore import

released 2015 reserves data, it is mainly caused by different iron ore units of measurement), a slight increase of 0.50% year-on-year. Since 2015, China's iron ore production has gradually declined. In 2016, China's iron ore production (including low grades) was 1.281 billion tons,

As China's crude steel production for many years running high, and more than 90% of the output is made of iron ore as a raw material contribution, resulting in huge demand for iron ore. While importing a large amount of iron ore, the output of China made iron ore is rapidly growing. Before 2000, China's iron ore output has been stable at an annual of less than 200 million tons (Figure 3). The output has continued to increase rapidly since 2001, with an annual output of 590 million tons in 2006 and a record high growth rate of 38%. During 2007– 2009, China's iron ore demand was strong and the supply of oversea deposits increased more rapidly. Although the total output amount of domestic mines continued to increase, its growth rate slightly decreased from the previous period. In 2010–2011, due to the 4 trillion yuan investment stimulating steel consumption in China and the rapid growth of international iron ore prices, historical records have been continuously refreshed. Many low-grade deposits, previously considered non-economic for mining, have also been gradually exploited. Domestic iron ore in 2011 reached 1.32 billion tons, an increase of 27%. After 2012, the growth of China's economy slowed significantly; however, the supply of oversea deposits continued to accelerate. Therefore the demand exceeds supply was gradually reversed. As a result, the price gradually dropped and the domestic high-cost mines were gradually squeezed out of the market. In 2012–2014, the growth rate of output of domestic iron ore decreased rapidly, and the output of in 2014 was 151,000 tons, an increase of 3.9%, although it slightly increased in 2016. In the past 16 years, China's domestic iron ore production increased 7.4 times, an average

down 7.27% year-on-year.

8 Iron Ores and Iron Oxide Materials

3.1. Domestic ore production analysis

Figure 3. Domestic iron ore production and growth rate.

Between 2003 and 2017, the average annual growth rate of China's iron ore output was about 18%. Meanwhile, the average annual growth rate of imported iron ore was 20%. The growth rate of imports was obviously higher than that of self-produced ore. Since 2000, China's iron ore imports, except a slight decrease in 2010, 2012 and 2015, increased substantially, the annual import grew twice over 35%.

By 2000, the major steel-making countries accounted for a relatively large amount of global imports. For example, Japan, the country with the largest import tonnage, accounted for an annual average of 28% in the world (Figure 4). Since 2000, due to the rise of China, the world's iron ore import pattern has undergone dramatic changes. China surpassed Japan in 2003 to become the world's largest importer of iron ore. The proportion of South Korea, Germany and Taiwan of China decreased slightly but little changed. The proportion of Japan was smaller; however, it is still the second largest iron ore importer in the world. In 2014, China imported 922 million tons of iron ore, accounting for 48% of the global output, 64.3% of the world's total iron ore imports and more than 70% of the global iron ore seaborne volume, and contributing to more than 90% of global iron ore consumption. In 2017, China's iron ore imports increased to 1.075 billion tons, which is 14 times of 2000. China is the world's most important iron ore consumer market and the world's largest spot market for iron ore. At this stage of relatively stable demand in Japan, South Korea, Germany and Taiwan of China, the proportion of imports from other countries is too small and China imports huge amount of iron ore, the changes in the demand for imported iron ore in China's iron ore market can approximately reflect the changes in the global iron ore spot market.

Figure 4. Iron ore imports/growth rate.
