But iron ore expansion has to meet peak

"Golden nine silver ten" this is a traditional steel industry busy season, but since September of this year, steel prices peak season is in decline, occasionally rise,API 5L X65 Steel Pipe and instantly fell back. Throughout 2012, iron and steel industry profit rate is only 0.04%.
At present, China is in the midst of the industrial structure adjustment. Energy intensive and highly polluting steel capacity under compression, corporate debt is becoming more and more heavy. By the end of July 2013, 86 key iron and steel enterprise's total liabilities is 3.03 trillion yuan, total assets ratio is about 69.4%. , according to the key iron and steel enterprises are in working for the bank.
Struggling, iron and steel industry will spread to the raw material purchasing. Since this year, iron ore,Welding Socket Weld slip on flange coking coal and coke are present prices fell after the beginning of spring, bottoming out in May and August trend callback after the high jump, and the steel price trend of convergence.
Even so, the next two years, iron ore production capacity will remain large expansion. Platts energy is introduced, according to the Australian energy ministry of economic affairs,API 5L grb Oil carbon steel pipe Schedule 60 steel pipe is expected to iron ore will be a huge increase in new supply from 2014 to 2015. Australia is the largest iron ore producer, production accounted for 25%.
According to statistics, supply accounted for 40% of the world's three largest iron ore miner new capacity is estimated to be 100 million tons of iron ore in 2013, 2014 and 2015 new capacity is expected to reach 338 million tons and 165 million tons respectively. At the same time,ASME B16.9 std a234wpb pipe elbow the estimated fortescue, citic rich Thai emerging mine in 2014 and 2015, such as new capacity, 198 million tons and 43 million tons respectively. I.e., in 2014 and 2015 global total of new production is expected to be 636 million and 208 million tons.
Some major international investment bank forecast, due to the new production in the next two years more, the price of iron ore in 2013 was flat, there is a larger decline in 2014, the subsequent year will continue to decline, long-term contract prices will soon get to $90 / ton.