Many major iron ore producers are eyeing the undeveloped western regions of China for future growth as the country’s steel output is at its peak.
Industrialisation and urbanisation of western regions like Xinjiang will require high volumes of steel and will raise Chinese demand for imported ore, reports Reuters.
Rio Tinto iron ore director Sam Walsh told Reuters that global iron ore demand for the future was strongly driven by China.
In the last ten years, the annual seaborne iron ore trade has more than doubled to about one billion tons, driven mainly by demand from China’s steel industry.
The flow has provoked global mining giants to expand capacity with Vale planning to increased output to 522 million tons by 2015 and Rio aiming over 100 million tons of output increase.