Developments in China's steel industry and the country's persistent focus on implementation of environmental policies will underpin demand for high-quality seaborne iron ore, BHP said in an outlook document on Tuesday August 20.
In the medium to long term, the supply side reform, the expected migration of steel capacity to coastal regions, the inexorable trend toward larger furnaces and more stringent environmental policies were all expected to underpin the demand for high-quality seaborne iron ore fines and direct charge materials, the miner said.Direct charge materials, such as pellet and lump, are varieties of ore that may be used directly in blast furnaces for steelmaking.Such materials often find renewed market value due to environmental considerations, among other reasons, because treating materials through sintering and pelletizing processes is environmentally harmful.Last year, BHP's board approved the South Flank project to replace the miner's Yandi mine production of 80 million tonnes per year of iron ore, with the mine...