Ross Garnaut, the former economic adviser to the Federal Government and ambassador to China, is predicting that Chinese steel making is going to fall by as much as 25% over the next 15 years. China currently produces approx. 800 million tonnes of steel per year. Garnaut says this is going to drop to around 600 million tonnes p.a. which is in contrast to predictions coming from Rio Tinto and BHP Billiton of up around 1,000 million tonnes per year.
Meanwhile, the price of iron ore continues to tumble. The price in April is 60% less than January.
Source: Manufacturers Monthly