The price of imported iron ore in the Chinese market is one of the important factors in determining the price of steel and affecting the steel industry. Because iron ore is used as the main material in steel production, its cost directly affects the cost of steel production. ‎
The growth in iron ore prices in the Chinese market improves steel making profit margins, as iron ore prices rise, the sale price of steel products will rise too, and it will cause sales profit margins for steel producers.‎
In addition, increased liquidity in consumer markets reflects increased purchasing power and demand for steel products, which ultimately contributes to the growth of the iron ore market. Companies and steelmakers are able to buy more iron ore by increasing their ability to pay and finance it, leading to increased demand for this raw material. ‎