Low Cost New Supply Continues to Ramp Up, India Bats On

摘要

Global iron ore supply is estimated to have grown by 2.9% in 2017. In 2018 and 2019, supply growth is forecast at 2.8% and 2.0% respectively, slightly higher than our December Quarter 2017 forecast of 2.2% and 2.0% for those years. Supply growth is from the ramp-up of major Vale's S11D and Roy Hill Holding's Roy Hill operation, the major producers continuing their gradual approach to system capacity and signs of growth activity in India. This is expected to be offset by a reduction in Chinese iron ore production due to price pressure in the short term.