A leading Chinese steel industry body predicts a modest increase in steel demand for 2015 as economic growth slows down in China reports Caixin.
According to the report, the China Metallurgical and Industry Planning and Research Institute believes demand for steel products will reach 720 million tonnes next year, up 1.4 per cent from this year. At the same time, the steel industry will produce 834 million tonnes of crude steel, an increase of 1.71 per cent from the year before.
The institute also predicts China will import 1 billion tonnes of iron ore next year, an increase of 6.4 per cent from 2014. The head of the institute and the deputy chair of the government-backed China Iron and Steel Association, Li Xinchuang says he thinks $60 per tonne would be the floor price for iron ore.
“If it crashes through the $60 barrier, many small and medium sized producers would become unviable. The supply and demand dynamic could be distorted again and the price for iron ore would go up,” Mr Li told Caixin.
Source: The Australian
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