Iron Ore Market
With the global economy in a recovery
mode since late 2009, the steel industry should continue on its
recent improvement trend.
The steel industry has recorded high growth rates in both production
and consumption over the past few years, benefitting from soaring
steel demand in the automobile and construction sectors before the
recession. Moreover, cost effective and highly efficient steel-making
technologies have lived the demand for US steel in the Middle Eastern
and Asian countries.
The World Steel Association (worldsteel)
recently released its October 2011 Short Range Outlook (SRO) for
2011 and 2012. Worldsteel forecasts that apparent steel use will
increase by 6.5% to 1,398 mmt in 2011, following growth of 15.1%
in 2010. In 2012, it is forecast that world steel demand will grow
further by 5.4%.
We expect to see growth performance varying
widely across regions. The recovery of steel demand in the developed
world will be slow while most of the emerging and developing world
should continue to enjoy robust growth in their steel demand."
China, the biggest market of iron ore, it's
apparent steel use in 2011 is expected to increase by 7.5% to 643.2
mmt following 8.5% growth in 2010. In 2012, steel demand is expected
to maintain 6.0% growth , which will bring China's apparent steel
usage to 681.6 mmt.