Saturday, 15 Oct 2011
Reuters quoted Mr Marcus Randolph CEO of Ferrous and Coal of BHP said global miner BHP Billiton has not had any iron ore shipment to China cancelled or renegotiated in the last few weeks.
He said that "We haven't had any shipment to China cancelled or renegotiated."
Traders said concern had risen in markets that Chinese steel mills were seeking to postpone shipments or renegotiate fourth quarter iron ore contracts as spot prices fell to their lowest since November 2010.
Global steel prices and production have weakened amid growing uncertainty about economic growth and financial markets in the second half.
Rival global mining group Rio Tinto reported on Thursday record iron ore sales for its third quarter, saying demand was holding up.
Mr Randolph said the iron ore sector was marked by insufficient supply, with BHP Billiton producing "as fast as we can", but that a pipeline of mining projects delayed by the 2008 financial crisis should outpace demand growth this decade.
He said that "We're expecting to see slower growth in iron ore as Chinese growth starts to tail off, adding his personal view was that Chinese steel use could overshoot its current growth trend before falling back and hitting iron ore and steel prices in coming years.”
He also said "If all of the projects come online and there are USD 430 billion of projects we will exceed the requirements of the steel industry in our forecast."
(Sourced from Reuters)
Reuters quoted Mr Marcus Randolph CEO of Ferrous and Coal of BHP said global miner BHP Billiton has not had any iron ore shipment to China cancelled or renegotiated in the last few weeks.
He said that "We haven't had any shipment to China cancelled or renegotiated."
Traders said concern had risen in markets that Chinese steel mills were seeking to postpone shipments or renegotiate fourth quarter iron ore contracts as spot prices fell to their lowest since November 2010.
Global steel prices and production have weakened amid growing uncertainty about economic growth and financial markets in the second half.
Rival global mining group Rio Tinto reported on Thursday record iron ore sales for its third quarter, saying demand was holding up.
Mr Randolph said the iron ore sector was marked by insufficient supply, with BHP Billiton producing "as fast as we can", but that a pipeline of mining projects delayed by the 2008 financial crisis should outpace demand growth this decade.
He said that "We're expecting to see slower growth in iron ore as Chinese growth starts to tail off, adding his personal view was that Chinese steel use could overshoot its current growth trend before falling back and hitting iron ore and steel prices in coming years.”
He also said "If all of the projects come online and there are USD 430 billion of projects we will exceed the requirements of the steel industry in our forecast."
(Sourced from Reuters)
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