Insight - Iron ore outlook more bullish than lower China GDP target suggests

China’s iron ore imports have had a steady start to the year, with Refinitiv estimating arrivals at 83.69 million tonnes in February and 86.14 million in January, roughly in line with the 88.4 million from December and the 89.29 million from November. (File pic show Iron ore transported by train in Australia.)

CHINA’S lowering of its economic growth target for 2022 to 5.5% seems at first glance to be bearish for iron ore prices, but there are others factors at play likely to keep upward pressure on the steel raw material.

There is little doubt that China, the world’s second-biggest economy and biggest importer of commodities, is facing headwinds, both domestic and global.