Thursday, May 19,
World’s major iron ore producer, Rio Tinto expects global iron ore prices to stabilize in the September quarter.*
Considering the situation of a tight supply, Rio Tinto expects iron ore prices in the September quarter to vary by only around 1 percent compared with the June quarter, said Sam Walsh, the firm’s iron ore chief.
Chinese steelmakers had been banking on resurgence in construction in the second quarter to boost demand for steel but tighter liquidity has slowed down property projects.
Australian iron ore prices have tumbled from a 2011 peak of around $196/MT in mid February to a current price of around $183/MT.
Rio Tinto also looks forward to boost its iron ore output to around 230 million tonnes in 2011 from around 200 million last year as it expands its mines. Rio Tinto mines the majority of its ore in the Pilbara region of Australia, making it the world’s no. 2 producer behind Brazil’s Vale.
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