Seaborne
iron ore supply will be balanced with demand by 2014 and then supplies will start to exceed demand, due to new
iron ore capacities coming on stream and with the gradual rise in
iron ore supplies as a result, said José Carlos Martins, executive director for the Ferrous and Strategy department of the world's largest
iron ore supplier
Brazil-based
Vale, at the 47th annual meeting of worldsteel (World Steel Association) held in Sao Paulo on October 7-9. Stressing that world steel demand will grow by 21 percent until the end of this decade, mainly driven by Asia and emerging economies, increased
iron ore supplies to satisfy this higher demand will reduce volatility on price. Nevertheless, the industry cost curve will support
iron ore price levels at three-digit figures, Mr. Martins warned.
Regarding
Vale's new investments, the
Vale executive stated that
iron ore production capacity of his company will rise to 450 million mt by 2018 from the current 306 million mt with the commissioning of large-scale projects, including Carajas
Iron Ore project, CLN, and new pelletizing plants in
Oman and in Tubarão.