Global Iron Ore Majors Raise Supply

Bloomberg reported that global iron ore producers are planning capacity expansions, with net supply set to increase by about 60 to 75 million metric tons in 2015.

As quoted in the market news:

Net supplies will increase about 60 million to 75 million metric tons in 2015, in line with a 75 million ton rise in 2014, as mine expansions in Australia and Brazil more than offset closures in China, according to Sanford C. Bernstein & Co. Morgan Stanley predicts a net rise of 63 million tons this year, with production expected to peak in September to October.

Rio Tinto Group and BHP Billiton Ltd. in Australia and Brazil’s Vale SA invested billions to raise low-cost output even as prices fell to a five-year low, seeking to boost sales and force less competitive rivals to close. The outlook for supply will be in focus on Tuesday as the heads of Rio and BHP’s iron ore units are set to speak at a conference in Perth, Australia. The gathering will also hear from Barry Fitzgerald, who’s leading this year’s opening of the Roy Hill mine in the Pilbara.

Click here for the full Bloomberg report