China’s crude steel output is expected to reach 746 million mt in 2013, up 30 million mt year on year, according to a report issued by China’s National Development and Reform Commission (NDRC). Meanwhile, China’s iron ore demand is anticipated to increase by 50 million mt in the current year compared to 2012.
In 2013, China’s domestic iron ore output is expected to increase by 20 million mt year on year. The NDRC stated that, with capacity expansion and new projects, China will achieve an annual iron ore output of 900 million mt in the coming years. During the 2013-15 period, the newly-added output capacity of iron ore in China is expected to reach 300 million mt.
According to the NDRC, the total newly-added output of the three global iron ore giants, Brazil’s Vale and Australia’s Rio Tinto and BHP Billiton, is expected to reach about 100 million mt in 2013. Meanwhile, Fortescue, Karara Mining and African Mining are also undertaking capacity expansion and new iron ore projects, with their projects expected to start production in 2014-15. Thus, oversupply of iron ore is inevitable, as stated by the NDRC.