IRON ore demand will double to about 3.5 billion tonnes per annum by 2030, with ongoing Chinese demand driving the ore’s production growth, according to resource intelligence agency Intierra.
The agency’s report centred around a presentation by Raw Materials Group chairman Professor Magnus Ericsson, which he made at the 15th annual Global Iron Ore & Steel Conference held in Perth in late March. The paper, Chinese and Indian Iron Ore Production – Determining the World Market Balance, was presented to iron ore and steel executives from Australia, India and China. Aiming to give key stakeholders further insight into the iron ore sector and its future, analysts from Raw Materials Group conducted key research into supply and demand issues regarding the commodity.
The main outcomes predicted as a result of the group’s research included China continuing to face hurdles in its quest to control at least 50 per cent of the world’s iron ore imports. According to Intierra, the Raw Materials Group analysts’ research also found direct foreign investments in Africa and elsewhere around the globe could be more difficult than currently anticipated. The research has predicted that iron ore exports out of India are expected to drop due to the growth of steel companies around the subcontinent and the need to supply domestic producers.
Indian steel companies in the region have voiced concerns that there is not enough iron ore mined domestically to support their local production and export requirements.
By Lorna Seatter