DEMAND --Sustained Demand

摘要

Overall, demand for iron ore has been positive, avoiding fears of a fast downturn as tensions ease and both steelproduction and construction activity picks up in China and Europe, largely on a seasonal basis. While there is uncertaintyaround long-term outcomes, the broader outlook appears to have considerable positive potential.As Lunar New Year celebrations end and industry activity resumes, Chinese demand appears to have returned toprevious levels and remained strong despite fears of an overall decline in economic growth. A combination of decliningmargins and a shortage--and thus price hike--in high-grade ore has led to a shift toward demand for lower-grades of ironore. BHP and Fortescue, amongst others, continue to supply the Chinese market, although they have said that theircapacity cannot rapidly increase to meet gaps in the market left by Vale's withdrawal.