The world's largest exporter of iron ore, said the market is located at the bottom, to predict the price of iron ore in the next year, a steady rise.
The Australian industry and science department in the quarterly forecast report released on Wednesday, 2017 iron ore prices averaged $60, followed by an increase in demand and supply growth slowed down to $75 in 2020.
Australia exports will slow down, because the Gina Rinehart is located in the Pilbara region of the Roy Hill project is the last in the construction of a large mine.
The Ministry said that with the high cost of production to exit the market, the world's steel output growth rebound, is expected to rebound in iron ore. With Roy Hill to achieve full production and Pilbara manufacturers reached the maximum production capacity, Macao production and export growth rate will slow down significantly.
Next year will fall to 8.02 tons. And iron ore will have 42 million tons of new supply to the sea freight market. Short term iron ore shipping market supply net increase will be a pressure on prices.
The ministry raised the export of iron ore this year to 7.62 tons of iron ore, which is predicted to be 7.48 tons, due to the Rinehart support for the mine to be put into operation later this year. Next year will increase to 8.24 tons, by 2020 will reach 9.28 tons.
Citibank also believes that the annual output of 55 million tons of Hill Roy will have a huge impact on prices, the mine is the largest source of new supply of iron ore.
2 the world's three largest mines increase iron ore output, ball mill steel ball export volume increase
The output of iron ore in the fresh water river valley is the highest in the single season, while the steel ball of the ball mill increases. The world's largest iron ore producer recently announced its third quarterly financial data, iron ore production reached 88 million 200 thousand tons, the company has the highest yield, the fresh water in the new steel mine, the ball used by our company.
The increase in capacity partially relieved the impact of the decline in iron ore prices on the performance of the freshwater river valley. The third quarter, the company achieved total revenue of $6 billion 618 million, compared to the previous quarter decreased by $467 million, the actual price of iron ore, nickel, copper and pellet decline. The company estimates that the negative impact of the decline in iron ore prices on revenues were $, but the improvement of iron ore powder to offset the negative impact of the above.
Australian mining giant Rio Tinto iron ore production in the third quarter also increased rapidly. Rio Tinto reported in the three months ended September, the iron ore shipments reached 91 million 300 thousand tons, an increase of 17%. In the third quarter, the iron ore production in Australia has increased by 7%, to 61 million tons, ball mill ball is not broken, but also to improve the yield of a key factor.
Compared with other iron ore producers in China, as well as in the global range, Vale, Rio Tinto and BHP have significant cost advantages. Vale third quarter iron ore powder C1 (Free FOB On Board, FOB) cash costs from the last quarter of 15.8 U.S. dollars / ton further dropped to 12.7 dollars / ton.
In this context, the world's three largest mine invariably take the amount of exchange rate strategy. Freshwater river valley is currently under construction of large mines are still advancing. Take the S11D project as an example, the construction of the mine and the factory completed the whole progress of the 75%, the railway port construction completed the whole progress of the 50%, the construction of the railway line to complete the full progress of the 72%.
Cara is the largest mining project, the total investment of 19 billion dollars, the annual output will reach 90 million tons, is expected to be put into operation in the second half of 2016, the ball mill steel ball is also relatively large, 60 thousand tons of ball mill ball.
Brazil mining giant vale company president and chief executive officer of Mu Li said the company is planning through the S11D project the annual production capacity from the current 3.4 tons to expand to 4.5 tons.