Sahit Muja: China's demand for iron ore at record 1.8 billion tons in 2012
Albanian Minerals expect that China's domestic iron ore mining to rise to 1.35 billion tonnes in 2012 and the global iron ore production to increase 3 billion tonnes up from 2.7 billion tons in 2011.
Albanian Minerals expect that iron ore demands in China to increase to 1.8 billion tons in 2012 and 2 billion tons in 2013. China consumes over 60% of the world's entire iron ore supplies.
This year Chinese iron ore import is expected at 600 million tons a 10 % decrease from 2011.
China's Ministry of Land and Resources has announced proven iron ore reserves amounted to 50 billion tons in 2010, this will be enough for only 25 years at the consumption rate.
Albanian Minerals has estimated that global iron ore resources are estimated to exceed 850 billion ton. China, which consumes over 60% of the world's entire iron ore supplies need to buy 550 billion tons of iron ore, if it continue to dominate the world's steel market.
India's demand for iron ore is expected to increase as country has limited reserves. India's iron ore reserves total about 8 billion tons, this reserve may supply China for only 5 years.
In ten years India will need to buy huge amounts of iron ore. It is embarrassing how India sale cheap iron ore and Chrome ore to China, while current reserves are being depleted rapidly.
Albanian Minerals has a very good news for iron ore mining companies and countries with huge reserves, iron ore market has bright future regardless of the law price at this time.
The world population has reached 7 billion this population will drive up the demand for iron ore, chrome ore, copper, nickel, aluminum, steel to build, new roads, railways, airports, hospitals, schools, banks, infrastructure, water projects, energy projects, courts and legal system, new factories, houses, buildings, oil and natural gas refineries, power plants, wind energy turbines, solar power, cars, trucks, airplanes, ships, machinery and much, much, more.
World largest iron ore importing country keeps dominating global steel market, China to produce 750 million tons of steel in 2012.
Albanian Minerals predict that Chinese iron ore import to increase 20% in 2013 due to poorer domestic ore grade in Chinese. Iron ore output is increasing in China but never to meet the demands.
The price of iron ore would go high in 2013 despite of supply increase from Australia, India, Africa and Brazil. The iron ore production cost in China is apparently higher than US $100 per tonne. Chinese iron ore import increased by around 68 million tonnes to 686 million tonnes in 2011 from 2010.
China's domestic iron ore output was higher than 110 million tonnes per month in 2012. China's rapid urbanization and industrialization has resulted in strong demand for iron and steel products. China is also one of the largest steel products exporting countries, domestic demand for iron ore is substantial.
Sahit Muja, President and CEO
Albanian Minerals, New York