Mining giant BHP Billiton reiterated its positive view on Chinese demand for iron ore, iron ore president Jimmy Wilson said at the conference. He explained this by the fact that steel production in China will peak at about 1.1 billion tons in the next ten years. “We remain confident that global demand for iron ore will continue to grow, albeit at a more moderate pace,” Wilson said.
However, while BHP Billiton and other iron ore miners expect demand to continue to rise from the Asian giant, some industry players and market watchers have warned that the era of rapid growth has come to an end and that production will peak at 850 million tonnes. The think tank even predicts that China's 650 million tonnes of steel per year will be enough to meet the country's needs in the coming years.
BHP Billiton reported a 19 percent increase in iron ore production in the six months to December last year, reaching 97.7 million tonnes. Wilson noted that BHP has worked a complete supply chain from mines via railways to its own ports to achieve sustainable production benefits. “Our iron ore business has the potential to deliver high revenue growth at a lower cost,” he said. Wilson added that in the longer term, BHP is considering a low-cost option to expand its production by developing the Jimblebar region.
Steel mills in China will keep demand for iron ore
|
Azovpromstal® 11 March 2014 г. 10:11 |
