Global iron ore glut on frail demand
By Ye Zhen |
March 26, 2013, Tuesday
|
Print Edition
Print Edition
THE global iron ore industry will face a supply glut due to slower growth in demand from China and elsewhere, the National Development and Reform Commission said yesterday.
China's total demand for iron ore may rise by 50 million tons this year based on an estimated increase of 30 million tons in crude steel production, the NDRC, China's top economic planning body, said on its website.
The NDRC said demand for iron ore will be limited because China's crude steel output will be flat as the country's steel industry shifts to improving the quality and efficiency of operations.
Meanwhile, demand from overseas steel industries will also stagnate due to the moderate economic growth in developed countries and a lack of infrastructure construction in emerging economies, the NDRC said.
China's domestic iron ore supply is likely to rise by 20 million tons and the world's top three miners - Vale of Brazil, Australia's BHP Billiton and Rio Tinto - may boost capacity by a combined 100 million tons this year, the NDRC said.
The total global supplies of iron ore may grow by around 300 million tons from this year to 2015 as smaller miners, including Fortescue Metals Group Ltd and Karara Mining Limited, expand, the NDRC added.
Last week Goldman Sachs Group Inc cut its outlook for iron ore prices by up to 11 percent over the next three years due to the oversupply and weaker steel output in China The US investment bank forecasts iron ore prices to average US$80 a ton by 2015.
China's total demand for iron ore may rise by 50 million tons this year based on an estimated increase of 30 million tons in crude steel production, the NDRC, China's top economic planning body, said on its website.
The NDRC said demand for iron ore will be limited because China's crude steel output will be flat as the country's steel industry shifts to improving the quality and efficiency of operations.
Meanwhile, demand from overseas steel industries will also stagnate due to the moderate economic growth in developed countries and a lack of infrastructure construction in emerging economies, the NDRC said.
China's domestic iron ore supply is likely to rise by 20 million tons and the world's top three miners - Vale of Brazil, Australia's BHP Billiton and Rio Tinto - may boost capacity by a combined 100 million tons this year, the NDRC said.
The total global supplies of iron ore may grow by around 300 million tons from this year to 2015 as smaller miners, including Fortescue Metals Group Ltd and Karara Mining Limited, expand, the NDRC added.
Last week Goldman Sachs Group Inc cut its outlook for iron ore prices by up to 11 percent over the next three years due to the oversupply and weaker steel output in China The US investment bank forecasts iron ore prices to average US$80 a ton by 2015.
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