Speaking at the annual Global Iron Ore and Steel Forecast Conference in Perth on Tuesday, March 10, Jimmy Wilson, BHP Billiton iron ore president, said that the iron ore cost curve will continue to flatten as low-cost seaborne supply replaces high cost supply in the market. In the short term, BHP Billiton expects iron ore prices to remain subdued as low-cost supply continues to rise.
Mr. Wilson also predicted that, after 2030, growth in the availability of steel scrap will cause global demand for iron ore to decline.
The BHP Billiton iron ore president underlined that the company is on track to reduce its unit costs below US$20/mt in the medium term.