The increase in iron ore mining is ahead of demand

World Iron ore mining capacities will grow faster than demand from steel factories in China, the world's largest consumer of this raw materials, the Baosteel Group Corp statement said in a statement by Baosteel Group Corp.

The growth of production steel fell to less than 5 percent after a 20 percent rise between 2000-2006, said Baosteel Chairman Xu Leiyang at the conference in Shanghai yesterday.

Iron ore fell in price by 27 percent from February 20, when its cost updated a 16-month maximum of $ 158.90. The largest manufacturers of iron ore raw materials, including Rio Tinto Group and BHP Billiton LLC, planned to invest more than $ 250 billion in the coming years in the development of new deposits.

The slowdown of steel production in China occurs against the background of expanding the power of iron ore. "At the time when small mining companies restrain their expansion plans, we continue to observe the self -confident three companies that consider themselves more competitive," said Xu Leiyang.

Due to excess production, steel prices in China have fallen today to the lowest level over the past eight months. The slowdown of the economies of China and the European Union forced metallurgists, including the international corporations Arcelormittal and Tata Steel, report on losses on a day.

China will not pursue a policy of significant stimulation under the new government and the worst time for the steel industry is still ahead, says the chairman of the Shanghai branch of Baosteel Ha Wanbo. The company should prepare for a deterioration in market conditions for the next 5 to 10 years, he added.