Iron Ore Miner Reaffirms Estimate of 1B Tons of Chinese Steel Production
09/03/2015 - Chinese steel demand has slowed, but one of the world’s largest iron ore exporters is sticking with projections that the country’s demand will grow to 1 billion tons in the next 15 years.
"I want to reaffirm my commitment and belief that about a billion tons by 2030 is a damn good estimate," said Andrew Harding, Rio Tinto Group’s chief executive of iron ore, during an investor briefing, according to BloombergBusiness.
"It’s the best one out there."
The affirmation came just a week after the world’s No 3. Iron ore exporter, BHP Billiton Ltd., trimmed its forecast. BHP had said it thought Chinese demand could grow to as much as 1.1 billion tons; it now expects demand to peak in the mid-2020s at between 935 million and 985 million tons, according to The Wall Street Journal.
China is currently producing roughly 800 million tons of steel per year. The country accounts for about half of global production, according to The Journal.
Rio is forecasting that steel demand will grow, on average, 2.5 percent each year over the next 15. Some of the that growth will be driven by emerging markets, the company said, projecting that demand from places other than China will rise 65 percent by 2030, The Journal reported.
Rio said it expects to see Chinese demand increase on account of residential replacement and increasing automotive demand.
According to Bloomberg, Rio said that about one-fourth of China’s urban residential buildings will be demolished by 2030 and replaced by structures that are more steel-intensive. It also said it expects the number of passenger vehicles to rise by 280 million over the same period, a threefold increase, Bloomberg reported.
"It’s the best one out there."
The affirmation came just a week after the world’s No 3. Iron ore exporter, BHP Billiton Ltd., trimmed its forecast. BHP had said it thought Chinese demand could grow to as much as 1.1 billion tons; it now expects demand to peak in the mid-2020s at between 935 million and 985 million tons, according to The Wall Street Journal.
China is currently producing roughly 800 million tons of steel per year. The country accounts for about half of global production, according to The Journal.
Rio is forecasting that steel demand will grow, on average, 2.5 percent each year over the next 15. Some of the that growth will be driven by emerging markets, the company said, projecting that demand from places other than China will rise 65 percent by 2030, The Journal reported.
Rio said it expects to see Chinese demand increase on account of residential replacement and increasing automotive demand.
According to Bloomberg, Rio said that about one-fourth of China’s urban residential buildings will be demolished by 2030 and replaced by structures that are more steel-intensive. It also said it expects the number of passenger vehicles to rise by 280 million over the same period, a threefold increase, Bloomberg reported.
