Inland China Steel Mills Could Increase Iron Ore Demand

According to Mining.com, a report from Nick Pickens of Minerals Value Service stated that inland steel makers in China could have a capacity for up to 300 million tonnes of iron ore demand. Though that supply could also come from longer term agreements or captive mines, there is some possibility that those producers could look to seaborne supply as a competitive alternative, according to Pickens.

As quoted in the publication:

A trenchant new research report by Minerals Value Service shows small miners are not just battling the Big 4 producers (or if you count Gina Rinehart and the Roy Hill project, the Big 5) but market inefficiency in China.

While domestic Chinese iron ore miners have been able to successfully defend prices up to now, pressure is definitely building says author of the report, Nick Pickens[.]

Click here to read the full Mining.com article.