[Melbourne Reuters]-Gaines CEO of Fortescue Metals Group (FMG) <FMG.AX>, the world's 4th largest iron ore giant, is steadily growing steel demand on the 10th In the background, he expressed caution that China is looking beyond the current supplier countries such as Australia to secure future resources.
At the industry meeting held here, although there were factors such as the intensification of the US-China trade war and the slowdown of the global economy, China has not reached the peak of steel use, and this year's demand was confirmed to be firm.
Gains CEO pointed out, “Those who think growth will slow down, or that China will stop developing markets to secure supply, may underestimate important factors.” He stressed that China's urbanization continues.
According to Gaines, steel use peaked in developed countries when the urbanization rate greatly exceeded 70%. China's urbanization rate was close to 60% last year.
He said, “At the beginning of the year, China's steel demand growth rate would have been 2-4%, but in reality it is expected to be 7-8% throughout the year.”
Fortescue has revealed that it has bid for development rights in two mining areas at the large-scale iron ore deposit “Simandu” in Western Guinea. Gains said, “Simandu has a high-quality iron ore sleeping. It is important to know where it is.”
