Vale is expected to: 2016 global seaborne iron ore demand is 13.5-14 one hundred million tons

The world’s largest iron ore producer CVRD said Friday, it is expected next year as global demand for seaborne iron ore 13.5-14 million tons, adding that next year the level of new supply entering the market will be less.

“Technically, the next year the price should be around $ 50 per ton, but in addition there are a number of factors including market confidence and so on,” Vale said Peter Poppinga an execution level. Spot iron ore prices Friday fell below the psychological barrier of 40 dollars per ton, the largest consumer of China’s steel demand is greatly reduced, and global excess steel supply of raw materials is the main cause of price pressure.

Iron ore prices in 2008 lowest level since the beginning of the spot market pricing. According to the annual price of iron ore has reached 10-year low, the price is only 2011 high of about $ 200 per ton in the fifth.

Poppinga said that this year there are 120 million tons of iron ore shipping new supply entering the market, but he expects that figure next year will be close to 6,000-7,000 tons, equivalent to the amount of natural attrition rate of the ore body.

Poppinga expects Chinese steel production and demand will decline next year, but the rest of the world’s steel production will be offset by increased China’s decline.