The global iron ore market may be in oversupply before 2014 as China’s economic growth will slow, the China Economic Weekly said, citing Baosteel Group Corp. Chairman Xu Lejiang.
China’s consumption of iron ore, coke and other steelmaking materials will expand at a slower pace as the government cuts excessive capacity to damp demand, the report said, citing Xu.
Iron ore price talks this year are “complicated,” and China can’t accept demands from suppliers to give up long-term contracts totally, Xu said, according to the report. Baosteel is seeking strategic supplies from Africa, Canada and South America, the magazine said, citing Xu.
Baosteel is drafting an overseas marketing strategy and will focus on South Asia, Southeast Asia and South America, the report said, citing He Wenbo, chairman of Baosteel’s listed unit. China Economic Weekly is a magazine owned by the state-run People’s Daily.
To contact the Bloomberg News Staff on this story: Xiao Yu in Beijing at email@example.com