Iron ore de­mand ex­pected to fall next year

China Daily (Canada) - - NEWS CAPSULE -

As China con­tin­ues to scale down steel out­put, iron ore de­mand is ex­pected to fall fur­ther next year, ac­cord­ing to forecast by an in­dus­try or­ga­ni­za­tion.

De­mand for iron ore will fall by 4.2 per­cent in 2016 from a year ago, said the forecast, made by the China Met­al­lur­gi­cal In­dus­try Plan­ning and Re­search In­sti­tute. Steel pro­duc­tion will fall by 3.1 per­cent to 781 mil­lion met­ric tons dur­ing the same pe­riod, as eco­nomic growth con­tin­ues to mod­er­ate.

Iron ore de­mand, which may fall by 0.4 per­cent this year, will de­cline by 4.2 per­cent in 2016 to around 1.07 bil­lion tons. Ac­cord­ing to the in­sti­tute’s es­ti­mates, to­tal steel out­put this year will be about 709 mil­lion tons, while iron ore consumption is es­ti­mated at about 1.12 bil­lion tons.

There are around 2,460 steel smelters in China. Only about 300 of them can sur­vive. Merg­ers and ac­qui­si­tions will take place fre­quently in the next three years, ac­cord­ing to an an­a­lyst.

JA­SON LEE / REUTERS

Women wear­ing masks dance dur­ing their daily ex­er­cise in the heavy smog in Beijing on Mon­day.

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