Fortescue Forcasts Stronger Iron Ore demand From China

David Nealis President of Blue Bridge

Fortescue Forcasts Stronger Iron Ore demand From China.

Australia's Fortescue Metals Group shrugged off worries about a slowdown in Chinese demand for iron ore, vowing to stick with an US$8.4 billion mine expansion plan and forecast China to remain a big buyer in coming years. The company sells 95% of its output to Chinese steel mills, China is the world's biggest buyer of iron ore and plans to nearly triple production by mid-2013. Spot iron ore prices fell 19% in 2011 as China clamped down on liquidity, but have been steady this year around US$140 a ton.

This makes me wonder if Fortescue sees something in the market that I do not see, with the EU slow down which is China’s largest trading partner and the continued restrictions on real estate in China, I am not sure where this increased Chinese demand is going to come from.