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Australia FMG expects strong demand for iron ore next year

Date:Dec 11,2020

Foreign media news on December 9th: Australian iron ore mining giant Fortescue Metals Group's sales and marketing director Danny Goeman (Danny Goeman) recently stated that it has benefited from the robustness of the Chinese steel market and the aftermath of the epidemic in other countries. Recovery, iron ore demand is expected to perform strongly next year.

Due to Brazil's continuing supply problems, the price of iron ore soared to US$150/ton this month. Last week, Brazilian miner Vale lowered its 2020 production forecast, further pushing up iron ore prices, which have risen by more than 80% this year.

 

The FMG Group stated that supply continues to be restricted. In terms of demand, according to customers, not only is there strong demand in the Chinese market, but also steel demand outside China is also very strong.

 

China's strong demand is mainly due to its huge manufacturing industry. Compared with other industries, the manufacturing industry has weaker seasonality and has been supported by the demand for household goods.

 

In addition, the recovery of steel manufacturing in South Korea, Japan and India also supported iron ore demand. Gorman said that coupled with the possible supply disruptions, people are worried about rising emotions.

 

Brazil is entering the rainy season, Australia is also facing a cyclone season, and in China, domestic iron ore mining usually stops during the winter in the northern hemisphere.

 

"We expect the market to remain strong throughout the year... So overall, we are optimistic about the strength and durability of the iron ore market." Gorman said.

TypeInfo: Trade news

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