Australia’s iron ore export earnings grew by 16 per cent to $63 Billion in the 2017 calendar year, driven by high prices and growth in export volumes. The iron ore price was supported by the recent ramp up in China’s steel production following winter production cuts and a seasonal rebound in demand from the construction and manufacturing sectors. The iron ore price is forecast to gradually decline over the next two years, as Chinese steel production eases and Australian and Brazilian supplies grow.
“China is an opportunity-rich market even as its economy continues to rebalance from industry to services, and later stage urbanisation continues. Longer term, we see a range of opportunities emerging from China’s Belt and Road Initiative,” said Balhuizen who will be speaking at the Current Market Trends and Commodity Forecast stream of the 5th Annual International Mining Conference (IMARC).
A softer iron ore price could spell good be news for the coal-producing States of Queensland and New South Wales as the fuel continues its charge to the top of Australia’s export earners.
The news is especially welcome for steelmaking coal producers as demand increases from India who is expected to overtake Japan as the world’s second largest steel producer in 2018, with production reaching 108 million tonnes.
I am cautiously optimistic about India. Significant improvement in both the quality and quantity of its infrastructure will be integral to India’s development agenda.
“Our portfolio of high-quality metallurgical coal and world-class copper assets are very complementary to India’s medium to long-term resource needs,” said Balhuizen.
Hear from Arnoud Balhuizen and more than 200 mining leaders at IMARC at the Melbourne Convention & Exhibition Centre 29 October to 1 November 2018.
For more information visit https://imarcmelbourne.com/
The International Mining and Resources Conference is Australia’s largest mining event. Bringing together over 6,000 decision makers, mining leaders, policy makers, investors, commodity buyers, technical experts, innovators and educators from over 90 countries for four days of learning, deal-making and unparalleled networking. IMARC will run from 29 October to 1 November 2018 at the Melbourne Convention and Exhibition Centre.
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