At last, mining giants such as Rio Tinto Plc and BHP Billiton Ltd are more than satisfied as they enjoy strong China’s demand for iron ore. The industry leaders note that iron ore imports by the world’s second economy jumped to the highest level in four months as the country has been recently witnessing the slow revival in the steel sector. The new positive trend has encouraged Rio Tinto to continue its expansion plans as it wants to take advantage of the visible upward trend. Yet BHP Billiton Ltd and analysts as well strongly underline that in the future global iron ore supplies would grow at the faster pace than demand, hence the prices might decrease substantially.
On the 7th of March, BHP Billiton Ltd. firmly rejected China’s allegations of iron ore manipulation aimed at driving prices up, underlining that it would improve its transparency in trade with the world’s second economy. China, which is the world’s biggest consumer of iron ore, is convinced that three iron ore miners manipulated the market, thereby pushing prices up.