China Pollutes Less and Impacts Global Iron Ore Pricing

Iron Ore Pellet 2014

Some sources estimate that China has over 400 Steel Mills. Therefore, a shift to reduce pollution has lowered output from some “bad actor” mills in China reducing overall supply while the global demand for steel is expected to increase in 2014. As basic economics suggests, increase demand with lowered supply means higher prices. The Platts outlook report on global iron ore stated that pellet premiums are expected to remain firm into the first half of 2014 as supply growth struggles to keep pace with an increase in global demand.

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