Arab Today, arab today china iron ore demand growth falls
Last Updated : GMT 17:13:46
Arab Today, arab today
Arab Today, arab today

China iron ore demand growth falls

Arab Today, arab today

Arab Today, arab today China iron ore demand growth falls

Perth - Arabstoday

Australian iron ore miners, key beneficiaries of China’s modern-day industrial revolution, on Tuesday signaled demand growth was finally slowing in response to Beijing’s moves to cool its economy. BHP Billiton, the world’s biggest miner, said it was seeing signs of “flattening” iron ore demand from China, though for now it was pushing ahead with ambitious plans to expand production. Rival Rio Tinto said it too was sticking with  plans to raise capacity from its huge mines in Western Australia’s Pilbara iron ore belt, betting on a soft landing for the Chinese economy. “The (Chinese) economy is shifting, it’s changing. Steel growth rates will flatten and they have flattened,” Ian Ashby, president of BHP’s iron ore division, said ahead of the Global Iron Ore & Steel Forecast Conference in Perth. China’s demand for iron ore, a key steelmaking ingredient, will slow to single digit growth, but the country’s annual steel output will still rise by some 60 per cent by 2025, Ashby said. The news knocked the Australian dollar, which fell a fifth of a US cent to $1.0595 right after the comments. The forex market is very sensitive to any hint of softening demand in China, given it is Australia’s single biggest export market. “What is concerning is the potential impact of single-digit demand growth for iron ore,” said Stan Shamu, an analyst at IG Markets. “Iron ore demand from China makes up a bulk of our exports and this will impact terms of trade. This shows that terms of trade are peaking and likely to flatten down the line.” Chinese demand for iron ore has been the driving force behind years of expansion work by the world’s biggest mining companies. More than 100 million rural Chinese are projected to settle in towns and cities in the next decade, requiring unprecedented amounts of steel for housing and infrastructure. Earlier this month, however, China cut its 2012 growth target to an eight-year low of 7.5 per cent, fuelling caution about demand for resources. The miners stopped well short of declaring an end to China’s commodities boom, but dimmed their outlooks. Rio, BHP and other big miners have been pursuing a strategy of running at full production and expanding capacity in long-life and relatively low-cost commodity assets compared to the selling price of ore, banking on squeezing out higher cost producers. BHP was sticking with its $10 billion iron ore expansion plan and was mining ore at a rate of 165 million to 170 million tonnes per year, Ashby said. That is above its production guidance of 159 million tonnes in fiscal 2012 ending June 30, maintaining the company’s No.3 global ranking in iron ore behind Vale and Rio Tinto. “The size of the pie is really big, so any per centage increase is a significant number,” Ashby said. Analysts agreed even single-digit growth in Chinese ore demand should be enough to spur miners to push ahead with production expansion plans. “Certainly the rate of growth in Chinese demand is slowing, but the growth is from an ever increasing base so the number of iron units required continues to rise,” said Paul Gray, analyst at Wood Mackenzie, who sees the seaborne iron ore market staying tight through 2012 and 2013. Rio was also sanguine about the slowing growth. “Although the rate of GDP growth in China is more immediately slowing, we remain confident, on the basis of the figures we have seen, of a soft landing, with solid growth for this year,” David Joyce, Rio Tinto’s managing director of expansion projects, said in a speech. BHP saw the current floor for global iron ore prices at $120 a tonne, based on the estimated highest cost of production inside China, Ashby said. Iron ore has sold for between $130 and $147 a tonne over the last four months, which mega-producers such as Rio Tinto have said is high enough to warrant investment in new mines. Rio Tinto has mapped out plans to lift its overall annual production of iron ore in Australia to 283 million tonnes in 2013 from 225 million now by digging new mines and expanding existing ones. Global iron ore demand is set to double to around 3.5 billion tonnes a year by 2030, with Chinese appetite for the steel-making material continuing to drive the market, albeit at a slower pace, according to Perth-based Intierra Resource Intelligence.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china iron ore demand growth falls Arab Today, arab today china iron ore demand growth falls

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Air raid kills eight women, child

GMT 06:42 2017 Friday ,17 February

Air raid kills eight women, child
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 05:26 2017 Sunday ,19 February

US natural gas market tightens

GMT 05:06 2017 Sunday ,19 February

Merkel: Euro is too low for Germany

GMT 04:58 2017 Sunday ,19 February

Swedish PM: Brexit deal in 2 years is unlikely

GMT 20:02 2017 Saturday ,18 February

Gold edges higher as global equities lose momentum

GMT 10:20 2017 Thursday ,16 February

New Zealand's Spark rings up interim profit rise
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 15:16 2017 Sunday ,19 February

Apple to start India operations with iPhone SE

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday