The iron ore price has kept a growing trend in recently years. To warried about this, Li Xinchuang, who is the vice chairman of the China Iron & Steel Association, is trying his best to contain the iron ore price at a steady level, which is now at around US$60 per tonne. However, has grew at least 60% lower than its December 2015.

The vice chairman forecasted steel production out of China was facing two more years of decline, having netted 1.8% contraction in 2015.

“Our original estimate was for a 3% decline this year,” Xinchuang said.

“Based on how things have played out this year, I think the decline in output might be less than anticipated but the downtrend remains unchanged.”

“Iron ore should be on a downtrend, not an uptrend."

Citing some operational challenges, but not any change on Strategy, the world’s largest iron ore company, Vale, Rio Tinto and BHP Billiton, have all suggested 2016 full-year output will be down on expectations.

Despite of a heated international wrangle, China has not materially pulled back its steel output. Falling supply has kept the price of iron under the floor now.


Created from mining-journal.com/