While there are uncertainties surrounding the strength of the demand and production of steel in China, miners such as Australia’s Fortescue Metals Group say there are so far no signs demand has crumbled given low levels of iron ore inventory at Chinese ports.
“The market is cyclical, it is generally determined by the outlook for steel production in China … and we saw China last year, produced just over a billion tons of crude steel,” Fortescue chief executive Elizabeth Gaines told CNBC’s “Capital Connection” on Monday, following the release of the company’s annual results.
Iron ore is a key ingredient for steel making, while steel is a raw material in many of China’s industries including the property sector.
Cadence Minerals plc (LON:KDNC) provides mining services. The Company focuses on finding lithium and other technology minerals in new places, as well as offers extracting services.