Cost of iron ore on the world market continued to fall and reached the lowest value over the past 20 months amid expectations that a growing supply of raw materials will not be able to absorb Chinese metallurgy.
Thus, according to The Steel Index, 28 may 2014 the price of ore with 62 per cent content of iron delivery to the Chinese seaport Tianjin fell 1.3% to $96.8 per/ton, the lowest since September 2012. With the beginning of the year raw material, which is trading below $100/t for the eighth day in a row, fell by 28%.
Leading mining companies such as Vale and BHP Billiton, ramp up production, betting on increased demand from Chinese consumers, although the growth of the economy China has started to slow. According to the forecast Goldman Sachs Group, in 2015, the global supply of iron ore will exceed demand by 175 million tonnes amid rising exports from Australia and Brazil.
According to Shanghai Steelhome Information Technology, as of may 23, the reserves of iron ore in the ports of China increased 0.7% to a record $ 113,3 million tons Since the beginning of year this indicator has increased by 31%.