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China’s demand for steel and iron ore is still “looking good”, says Fortescue Metals Group CEO, Nev Power.
China is the world’s largest steel producer, churning out some 800 million tons of the alloy a year, so it will continue to be the most important regional market for iron ore producers, he added.
In the rest of fast-growing Asia, steel and iron ore consumption will also drive demand, Power said.
His comments come amid a volatile price market with prices falling to around $67 per metric ton now from $95 earlier this year, a level that “overshot the market,” Power said.
“I don’t think anyone’s surprised to see them come down from those very high levels,” he added. Today’s price level is still “a very strong” one.
