The restructuring of China's steel industry and the strength of its economy will continue to encourage steel mills to favour higher grade iron ore, analysts predict, in potentially worrying news for Australian producers of lower-grade ore such as Fortescue Metals Group.
After returning from meetings in China with large steels mills, including Baosteel and Hebei Iron and Steel, Deutsche Bank analysts led by Paul Young said they expected the closure of inefficient steel furnaces in China to continue to advantage higher-grade iron ore producers.
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Tess Ingram was a journalist with WAtoday. Before that, she was a reporter in The Australian Financial Review’s Perth bureau, covering business, economics and politics. Connect with Tess on Twitter.
