China Iron Ore Market Demands More And More

Speaking to reporters at an industry conference in Qingdao China

, the worlds largest iron ore miners said on Wednesday they have seen no weakness in demand from China. Forecasts for Chinas imports by 2015 now top 1 billion tonnes up more than 60% from 2010 due to the relatively high cost and the low quality of its domestic supplies. Firm demand from Chinas construction sector and a drop off in Indias exports has been behind the strength in spot iron ore prices which, at above $170 a tonne, have trebled from late 2008. The big three BHP, Vale and Rio Tinto control nearly 70% of the annual iron ore seaborne trade and dominate price talks. Rio told Reuters it has not received any requests from Chinese buyers to delay iron ore shipments, while Fortescue, the worlds fourth largest exporter, said global prices are expected to remain high next year before additional capacity comes online between 2013 and 2015. MarketWatch quotes Tito Botelho Martins, executive director of Vale Canada as saying the outlook in all metals markets, including nickel, continues to be extremely positive and that the current situation in the markets is temporary. Not everybody is so sanguine about the outlook for the market however. Reuters quotes Graeme Train, commodity analyst at Macquarie in Shanghai (pictured): The risk though is even if China is buying iron ore and the situation ex-China gets really bad, not even Chinas strength can hold the price up at where it is. MINING.com reported last month Chinas 27 largest steel companies saw a 15.7% decrease in the first-half profits from a year earlier for a combined profit of $1.6 billion, according to the Shanghai-based researcher Wind Info, as soaring iron ore costs squeezed margins. The woes of Chinas steelmakers, which have been switching to cheaper low grade ore to cut costs as prices top $170/tonne, are in stark contrast to profits at miners. BHP Billitons iron ore division accounted for the bulk of its record $22 billion in annual profits reported in August. Research consultants Wood Mackenzie said in July that Chinese construction spending wont slow down until 2020 which will keep spot prices of iron ore above $150/mt through 2015. Hongxing Machinery lays much emphasis on the quality and clients. We serve clients with the quality guideline of being responsible for every working procedure, every product and every client. What we have done is for the clients and we believe that quality is the best way to develop market. All of the products have passed the authentication of ISO9001. Hongxing Brand is the Chinese Famous Brand. Reliable and stable quality is the key to success. Our products are well known at home and abroad. Now we have tens of thousands of users throughout China and more than 30 world markets. As a leading global manufacturer of crushing and milling equipment, we offer advanced, rational solutions for any size-reduction requirements, including quarry, aggregate, grinding production and complete stone crushing station. We also supply individual jaw crusher and Raymond mill as well as spare parts of them.

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