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.
Rio Tinto PLC, the world’s second largest mining company, informed that it would expand iron ore production by approximately 15 percent as it saw its 2012 output grow to about 253 million tons, topping its earlier forecast. The strong results were pushed mainly by the revival in China’s demand for iron ore.