Sunday, October 2, 2011


World iron ore market heads for balance by 2015-17
 
China Daily reported that global iron ore supply and demand will become more balanced during 2015-2017 as new capacity comes on stream.

Mr Jose Carlos Martins executive director of marketing sales and strategy, told reporters in Qingdao, Shandong province said prices might ease and then stabilize as the expansion of the global iron ore supply involves huge challenges from delays and cancellations.

He said that "Our concern is how many projects will really be delivered and how many will meet their time and production targets."
His comments followed the release of analysts' forecasts of a surplus and lower prices starting in 2014.

Citigroup Inc estimated earlier this month that there would be a surplus of 50.6 million tonnes of iron ore in 2014, driven by increased output capacity.


Mr Marcelo Aguiar mining analyst said this week in Brazil said Goldman Sachs Group Inc forecast average prices of USD 170 a tonne next year USD 160 a tonne in 2013 and USD 125 a tonne in 2014. He said that "We expect the iron ore market to remain tight as continuing urbanization and industrialization elsewhere in Asia, such as India and Southeast Asia, add new pressure to steel and raw material supplies.”

- Umesh Shanmugam 

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