Imports by China will rise 6.3 percent to 872 million tons this year and jump to 916 million in 2015, Australia’s Bureau of Resources and Energy Economics said in a quarterly report in March. Australia’s Port Hedland, the largest bulk-export terminal, reported yesterday shipments to China grew 36 percent to 130.5 million tons in the first five months of 2014.
“We do expect the iron ore market to shift from a significant deficit in 2013 to a surplus in 2015 and 2016,” Societe Generale SA said in a report e-mailed yesterday. “However, the world will still need more than 200 million tons of high-cost Chinese iron ore mines, which are not viable below a price of $120 a ton. As a result, we expect iron ore prices to stay above $100 a ton for the foreseeable future.”
AGO Price at posting:
68.5¢ Sentiment: Buy Disclosure: Held
