Global demand for steel is growing, and major iron ore producers have made plans to increase their output capacity to keep up. Major miners were represented at a panel discussion during the Singapore International Ferrous Week 2021 on Tuesday July 13 to discuss the outlook for supply and demand.
Supply outlook
BHP has achieved record production of iron ore in the first nine months of its current financial year, and is on track to achieve output at the upper end of its production guidance range of 276-286 million tonnes for the year, according to Rod Dukino, the company's vice president for sales and marketing of iron ore.
Operations started in May this year at the new 80 million tonnes-per-year South Flank mine in the Pilbara region of Western Australia, Dukino said, and this would increase BHP's iron ore product content to 62% from an average of 61%. The South Flank project would also produce more iron ore lumps, which will help BHP's customers to work toward their decarbonization goals.
"Supply has not been able to keep up with demand. The seaborne [iron ore supply]...