Vale not concerned at any slowing in China ore demand
2011-07-07 09:17:30 [Print]
Bloomberg cited Mr Guilherme Cavalcanti CFO of Vale SA the world largest iron ore producer, isn’t concerned about a potential slowdown in demand from China as urbanization in the country proceeds.
Mr Cavalcanti said “China will continue to lead global consumption of the steelmaking ingredient. Difficulties in bringing projects to production will cause a demand supply imbalance lasting six or seven years with insufficient volumes of ore to cover consumption in the next five.”
He said that “We aren’t feeling any contraction in demand for iron ore mainly because infrastructure building is still going on in there and also social housing. China plans 36 million such homes in the next five years. The urbanization process in China is far from over, so we think that these will keep leading the demand for iron ore.”
Vale last week cut its long term iron ore output forecast by about 10% to 469 million tonnes by 2015. The company said earlier this year that it delayed the start of four projects for as many as two years amid equipment workforce and licensing constraints.
Mr Cavalcanti said “China will continue to lead global consumption of the steelmaking ingredient. Difficulties in bringing projects to production will cause a demand supply imbalance lasting six or seven years with insufficient volumes of ore to cover consumption in the next five.”
He said that “We aren’t feeling any contraction in demand for iron ore mainly because infrastructure building is still going on in there and also social housing. China plans 36 million such homes in the next five years. The urbanization process in China is far from over, so we think that these will keep leading the demand for iron ore.”
Vale last week cut its long term iron ore output forecast by about 10% to 469 million tonnes by 2015. The company said earlier this year that it delayed the start of four projects for as many as two years amid equipment workforce and licensing constraints.
