China is the world’s largest iron and steel producer. It has more than 50% of the world’s production. This feature allows it to play a decisive role in the iron market. It has the same characteristics in terms of consumption. If we evaluate it in terms of competition with other countries; It has a high supply of raw materials, which strengthens its hand.

China’s iron and steel production is changing the steel trade balances around the world. The Chinese economy has a structure in which the state’s ability to direct is quite high. In China, most of the economic activities are carried out under the supervision of the state, and the policies of the state affect economic decisions. For example, China’s agreement with the state-owned company “China Mineral Resources Group” (CMRG), which has recently come to the fore, is interpreted as a single-source iron ore purchases. This decision aims for CMRG to play a decisive role in the market and manage China’s iron ore purchases through a single company. At a time when supply is increasing, China’s decision to make all of its iron ore purchases through a single state-owned company could have a significant impact on the market. CMRG can single-source $160 billion worth of Chinese iron ore trade, enabling 20 Chinese steelmakers to purchase ore through the company.

In the light of these evaluations, the current stagnant and even declining Europe, Ukraine and Russia at war; It is obvious that the Far East will be permanent in the markets where it has a say in a short time and will not leave its position as a decisive decision-maker in other producers and countries. It seems that the rise of the Far East will continue in the coming times.

Best regards;
ÜRKMEZ SAC DEMIR