The CBA says demand for Australian iron ore and coking coal will...

The CBA says demand for Australian iron ore and coking coal will remain strong this year


DAVID SCUTT
FEB 20, 2018, 9:24 AM

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https://edge.alluremedia.com.au/uploads/*/2016/03/China-steel.jpgPhoto by Pascal Parrot/Getty Images

• Global steel production grew by 5.2% in 2017, led by strong gains in China and India
• The Commonwealth Bank says this is supporting demand for Australian iron ore and coking coal exports
• It expects Chinese steel production — already accounting for around 50% of total global output — to grow by 1.5% in 2018

Growing steel production in China and India will help support Australian exports of iron ore and coking coal again this year.
That’s the view of Vivek Dhar, Mining and Energy Commodities Analyst at the Commonwealth Bank, who says the momentum seen in 2017 will continue to grow, albeit at a slower pace.
“China and India account for 50% and 6% of global steel production respectively,” he says, adding that production at these two nations alone increased by 5% and 6.2% respectively in 2017.
These increases coming off already massive bases are incredible .!!!! Personally I believe that the iron ore price will most likely still spike through march and april - possibly up to $ 95 ??? then it will be in the hands of the gods -)
I dont believe any of us should underestimate the drive coming from india , they are moving towards 6-7 % increases year on year and the fact that their courts have cancelled a massive no of iron ore mining licences which will mean higher purchases from australia .
CBA believe iron ore stronger for longer and so do I - international markets all moving in the same direction and the two giants of the international stage are leading the way ( USA CHINA )
This is the first time restrictions have been put on chinese mills for such a long time and now they all close for 1-2 weeks !!!!! anything could happen next week but im predicting upward movement because they will all be scambling for stock to clear orders !!!!!

PLUS GBG WILL MOST PROBABLY LOSE ANOTHER $ 300,000,000 WORTH OF LOAN GUARENTEES VERY SOON .