China will continue to move towards quality iron ore

BHP Billiton Ltd, the world's largest miner, predicts reforms in China's steel sector that will continue to favor suppliers of high-quality iron ore and coking coal as steel consumption continues to rise over the next decade.

“This has led and is driving a constant demand for high quality raw materials,” which has led to a wider distribution between premium and low grade iron ores and coking coal, ”said BHP Chief Commercial Officer BHP Balkhuisen. "We believe these price differences will persist - at least two-thirds of what we saw last year."

BHP predicts "slow but steady growth" in China in steel consumption of about 1 percent per year by the mid-2020s, supported by opportunities from the Belt and Road Initiative, Balhuizen said.

“By the end of the next decade, we will see slow demand for steel as well as iron ore,” he said.