2021 PREVIEW: China's raw materials policies to sway global ferrous markets

China's raw materials policies - including the ban of coking coal imports from Australia and the new recycled raw materials classification - will likely be among the key drivers of the global ferrous markets in 2021, market sources told Fastmarkets.

Uncertainty over import policies caused by geopolitical tensions and supply have resulted in shifts in the consumption patterns of steelmaking raw materials by the world's biggest steelmaker.
This uncertainty is set to remain obvious in 2021, with many market participants expecting an unpredictable raw materials environment to continue to cause volatile prices.
Metallurgical coal ban
Many market participants expect the unofficial ban on Australian metallurgical coal imports that began in October to remain into 2021 and cause more swings in trade flows.
An Australia-based trader source said a major Canadian miner is planning to reduce the quantity of coking coal allocated for Indian end users in its term contracts in 2021 and target more volumes to China.

"It's a win-win situation both for the Canadian miner and Indian steel mills. The miner can make more profit with Chinese mills paying higher prices and Indian mills can buy Australian...

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