The Carajas project now has an annual output of 109 million tons, making it the biggest iron ore project in the world. It is anticipated that the Carajas project will achieve its maximum production capacity in 2018, at which point it will exceed 230 million tons. exploitation of their planned term is forty years, extraction volume is anticipated to reach four billion tons, and future plans will continue to develop the scale in accordance with demand. vale expanded its investments in high-quality ore during the course of the previous year. This is the largest investment in an iron ore project ever made anywhere in the world, and it was revealed in July 2012 that the Carajas mine, which is owned by the Vale development business, has spent $19.5 billion to build the S11D mine in the southern area. This mine will be the future vale continues to lead the global iron ore sector of protection, as the worldwide market for such high-quality ore demand remains strong. As a result, its market price is very constant. There are two pieces of china-related news that capture the interest of the international steel business whenever reporters conduct interviews in Carajas. First, during the period in which China’s economy was on the mend, Brazil’s shipments of iron ore to China surged at a quick pace. The folha de sao paulo newspaper in Brazil stated that brazilian iron ore shipments to china reached 74.6 million tons in September. This is a monthly increase of 8 percent and a year on year growth of 15 percent, which creates a history record. Second, on October 18th, the “chinese version of” iron ore futures were launched on the dalian futures market, which is part of China’s improved pricing. Despite the fact that people talk about the rise in the price of iron ore, they have repeatedly emphasized that the steady development of China’s economy, as well as the economic recovery in the United States and Europe, are the two main factors; however, they predict that the future will not be very optimistic. The iron ore market, according to the executive director of Vale, Mading Si, would have essentially achieved saturation in 2015. The price of iron ore is expected to remain at $100 or higher until 2018, when the excess capacity could reach 5-6 percent. However, it is highly unlikely that the price will reach its current peak. The primary reason for this is that the major iron ore producers are increasing their production capacity. China is dependent on outside sources for more than sixty percent of its annual iron ore requirements. As a result of China’s growing urbanization and its rising exports of completed steel products, China has become a chasing object in the market for the main iron ore suppliers across the globe. Due to China’s lack of pricing power in the international iron ore market throughout the years, long-term market share has been confined to businesses such as Vale, Rio Tinto, BHP Billiton, and others. The global iron ore production capacity is expected to expand, and since the Chinese market is so important, the Chinese government has raised prices to create the necessary circumstances. The introduction of iron ore futures will assist to gradually modify this passive status, which is china’s aim to gain more pricing power for iron ore. A new era has begun for the world as a result of the first usage of rmb for iron ore futures. A recent interview with Mading Si revealed that he believes the price of iron ore is becoming more reliant on the Chinese market. If you are looking for a provider of high-quality carbon steel pipe, tinplate, or steel wire in China, go no further than ontrend industrial limited. If you have any questions, feel free to contact us via our website.
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