Australia’s Fortescue expects robust demand for steel next year
Australia’s Fortescue Metals Group Ltd expects iron ore demand to be strong next year thanks to a solid Chinese steel market and post-pandemic recoveries in other countries, a senior company executive said.
Iron ore prices soared this month towards $150 a tonne due to ongoing supply issues in Brazil where miner Vale trimmed its 2020 output forecast last week, pushing up prices which have already gained more than 80% this year.
“We continue to expect strong market dynamics,” Fortescue’s Danny Goeman, director of sales and marketing, said.
“Obviously supply continues to be constrained. On the demand side, even outside of China, our customers keep telling us there is very strong steel demand,” he told a briefing that marked the start of ore processing at Fortescue’s Eliwana mine expansion.