Global iron ore miners have turned off the tap on adding new production capacity to feed China’s steel mills as the world’s largest customer is already awash with supplies, according to Fortescue Metals Group Ltd.
“The reality is that most of the producers, ourselves included, are not actually looking to grow supply of iron ore into China,” Fortescue Chief Executive Officer Elizabeth Gaines said in a Bloomberg TV interview.
“The market is very well supplied and the build-up of inventory at the ports is an indication of that. Nobody is looking at adding new supply into the market.”
Australia, the world’s largest iron ore exporter, delivered a mixed message Monday on the outlook, raising near-term price forecasts, but combined that revision with a more somber message that China’s gargantuan imports are set to level off as steel production eases in the coming years.
“We are seeing that demand is still very strong,” Gaines said Monday. “Our view is that steel production will remain at roughly the same levels. It will stay relatively flat.”
For the rest of this article: https://www.bloomberg.com/news/articles/2018-04-09/iron-ore-giant-says-miners-have-shut-gates-on-adding-new-supply