Brazil iron ore producer Vale is expecting a 34 percent increase in iron ore demand by 2020, an executive told local media on Monday.
According to executive director of ferrous and strategy at Vale, Jose Carlos Martins, steel production is expected to rise by 23 percent between 2012 and 2020, he said, adding the product will move from the Chinese to the transoceanic market.
In 2013, the iron ore transoceanic market reached 1.23 billion metric tons (mt) and Vale’s share was 22 percent. In the period, the world’s largest iron ore producer exported 271 million mt of the product.
The executive said the company plans to expand its market share in this market. In 2014, exports will account for about 87 percent of Vale’s iron ore production.
“In the short, medium terms we hope there will be a gradual recovery of iron ore demand in Europe, once steel production is yet to recover fully from the effects of the 2009 crisis”, the executive said.
Citing data from Eurofer, Martins said steel demand should increase by 2.7 percent in 2014 and 3.1 percent in 2015, following a 1.8 percent deceleration in 2013.