US President Donald Trump's plan to upgrade roads, ports and bridges will boost steel demand and support iron ore prices, Australian Treasury Secretary Matthias Kormann said. "Therefore, global steel demand, we believe, will continue to require significant exports of Australian iron ore."
Iron ore prices fell nearly 30 percent after Chinese Premier Li Keqiang said last month that he plans to cut his country's steel potential. China is Australia's largest iron ore exporter, accounting for more than 3 percent of Australia's gross domestic product.
Iron ore dropped to a low of just over $ 38 in December 2015 but recovered gradually until it peaked this year at just under $ 95 in February before retreating back to around $ 65 a tonne. Now, according to Australian Finance Minister Mathias Cormann, there is an incentive for demand for iron ore.
Trump's plan to modernize infrastructure has a positive effect on iron ore
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