iron Ore DemandThe following is how I research the iron ore demand. It does not mean LIF will get higher revenue or pay higher dividend. It is IOC's job which I have no visibility and control.
I try to find the demand of iron ore but there only find retro-data of yesterday. The commodity contract price has wide spread that it seems no reasonable conclusion can be made. The difference of iron ore's September and October is more than U$20. That is so unrealistic. So I turned to another direction.
To produce steel, you need metallurgical coal.
Teck upgraded at BMO on strong coal prices, investor day outlook. The coal sold by Teck is metallurgical. From Teck's investor day
presentation, the demand outlook is from current's 191 mt to 2030's 235 mt. I interpret this as continuous steel production growth.
The temporary reduction on the demand for iron ore (reflected by the falling from sky price) may not reflect the long term perspective.
By the way, Tech’s presentation has indicated coal based steel making will be reduced in the future.